ifitatt College of Agriculture 
 
 ^t Cornell ^nibttsitf 
 
 3tbaca, ^. s. 
 
 %ihtavp 
 
 Cornell University Library 
 HE2710.A25L3 
 
 The act to regulate commerce and supplem 
 
 3 1924 013 953 652 
 
THE ACT to REGULATE COMMERCE 
 
 : ■ AND ;,„, ■ '■; ' 
 
 SUPPLEMENTAL ACTS 
 
 ONE OP A SEBIEg OP TREATISES IN AN INTERSTATE 
 eOMKCERCE AND BAIKWAY TRAFFIC COURSE 
 
 Ia|uVLLE I^JN^OR jjMVEltSIT^^ 
 
 : ; , (Npn-Rssid^nt InstSFubtion) 
 
 ■ \ /;;■■,'_ ■ CHICAGO' ''V'" 
 
 948-A ' :'!^ ■, '" r 
 
INTERSTATE COMMERCE 
 
 AND 
 
 RAILWAY TRAFFIC COURSE 
 
 Prepared under Editorial Supervision of ^ 
 
 Samuel MacClintock, Ph. D. 
 
 The subjects • listed below constitute " the basic ioaterial , 
 of a CQurse in Interstate Goinmerce and Railway TraflBJe.; 
 This coiirse is. , especially desired to meet the constantly - 
 
 , growing demand for efficieritlj' tifained meit'iiii raflfoad and V 
 industtial traffic work; to; assist; students to pass the^ exam- 
 inations for eDvemment service under the Interstate Cotd'y 
 merce Gpmjnission; and. to nieet ,th^ demand foremen com- 
 
 , petent tp direct the work of comi^ercial (|irgamz^ti@ds sad ~ 
 trsiflBc bureaus.' Witji the exception of the Atlas of RailwayiV 
 .Traffic Maps, the subjects' listed below are covered in an 
 average of approximately 200 . pages each. 
 
 Atlas of Railway Traffic Maps, 
 T^jiffic Qlostsary ;, 
 ^ Freight Classi^t^aitiorit So^e Ways of Re<lucihg Freight 
 
 .',' r'V''_,t Charges- -. 'i. '■'■,"■:.- ,'- '-r'". '";.. '- ', ',, '■"■-''';-, 
 Frei'^t Ratesi Wjesterii. TeJtitory; Bases for Frd^t 
 
 Rates: Official Classification TerritSry and 
 Eastern Canada ; Indpstrial Traffic Departtnent 
 Freight Rates: Southern Territory 
 Public?psipn arn^ Filjiig of rTadffs ^ 
 
 ; Frdgftt' ; Claims ; IriVesiligaHort- ' of Ff sight Claims ; 
 ;. Rpa^ij^ Freight Shipments; The Bill of Lading; 
 A Primary Lesson in Transit; demurrage 
 Railway Organization; Statistics of Freight Traffic; 
 
 Railway Accounting . j' 
 
 ^The ExjSress Service and Rates 
 Ocekii Traffic aijd, Trade -i 
 
 Railway Regulation iv^ 
 
 The Act to {Regulate Cranmerce and Supplemental Acts 
 Conference Rulings; jProcedure Before the Interstate 
 Commerce. CoJal^nission ; Grounds of Proof 
 _;,, Rate Gases','""'"' "■_ ■-/,; -■'",'"■".' 
 
 Apiplication of Agency Tariffs 
 The Law of Carriers of Goods 
 Practical Traffic Problems 
 
 LASALLE EXTENSION UNIVERSITY 
 
 m 
 
THE ACT TO REGULATE COMMERCE 
 
 AND 
 
 SUPPLEMENTAL ACTS 
 
 |a £a| JLE P&EHSM m^ITY 
 
 (Home Study Under Expert Guidsnce) 
 
 CHICAGO 
 
 1»17 
 
Oopyrigh*, 191* 
 
 hABAMM 
 
CONTENTS 
 
 SECTION 1 
 
 Scope 6 
 
 Pipe lines 7 
 
 Common control, management, or arrangement 9 
 
 Adjacent foreign country 13 
 
 Intrastate commerce 13 
 
 Definitions 14 
 
 Charges 15 
 
 Jurisdiction of Commission over classification 22 
 
 Bills of lading 25 
 
 Same subject: Duty of carrier to issue 25 
 
 Same subject: Construction 27 
 
 Tickets 28 
 
 Baggage 28 
 
 Facilities 29 
 
 Free transportation 31 
 
 Conunodities clause 32 
 
 Switching connections 33 
 
 SECTION 2 
 
 Crimes S7 
 
 SECTION 3 
 
 1. DISCRIMINATION 
 
 In general 39 
 
 Control and regulation of discrimination 43 
 
 Jurisdiction of Commission 43 
 
 Determination of discrimination „ 44 
 
 Justification of discrimination: Carrier as shipper or consignee. . . 48 
 
 Same subject: Carrier not serving prejudiced point 48 
 
 Same subject: Competition in general 49 
 
 Same subject: Potential competition 50 
 
 Same subject: Bailroad competition 60 
 
 Same subject: Water competition 51 
 
 Removal of discrimination 53 
 
 2. FACILITIES 
 
 Interchange of facilities 54 
 
 Terminal facilities 55 
 
 SECTION 4 
 
 1. LONG-AND-SHORT-HAUL RULE 
 
 In general 56 
 
 Constitutionality of Section 4 , 59 
 
 lu 
 
CONTENTS 
 
 Jurisdiction of Commission 60 
 
 Exceptions 60 
 
 Application of Section 4 to rates 62 
 
 Competition as justification 62 
 
 SECTION 5 
 Pooling of freight 65 
 
 aght. 
 Act: 
 
 Panama Canal Act: Water carriers 66 
 
 SECTION 6 
 
 J. TARIFFS 
 
 Jurisdiction of Commission 68 
 
 Publication: Effect 69 
 
 Adherence to published rate 69 
 
 Erroneous quotation by carrier 70 
 
 Necessity of publication 71 
 
 Purpose of publication 71 
 
 Posting . ., 71 
 
 Construction 72 
 
 Through shipments 73 
 
 Special contracts , 75 
 
 SECTION 7 
 Continuous carriage 79 
 
 SECTION 8 
 Attorney's fees 80 
 
 SECTION 9 
 
 Actions at law 81 
 
 Same subject: Witnesses 81 
 
 SECTION 10 
 Penalties 82 
 
 SECTION 11 
 The Interstate Commerce Commission 85 
 
 SECTION 12 
 Powers of Commission 86 
 
 SECTION 13 
 Parties to complaints 87 
 
CONTENTS V 
 
 SECTION 14 
 Reports o2 the Commission 89 
 
 SECTION 15 
 Importance of Section 15 90 
 
 1. JURISDICTION OF COMMISSION 
 
 In general 92 
 
 Primary jurisdiction 92 
 
 Finality of Commission's findings 94 
 
 Jurisdiction over procedure 96 
 
 Jurisdiction over orders 96 
 
 Jurisdiction over capitalization 96 
 
 Jurisdiction over interstate rates ; 97 
 
 Jurisdiction over intrastate rates 98 
 
 Jurisdiction over suspension of rates 99 
 
 Jurisdiction over unpublished rates 100 
 
 Jurisdiction to award damages 100 
 
 Jurisdiction over reasonable rates 101 
 
 Jurisdiction over divisions 102 
 
 Jurisdiction over advanced rates : In general 103 
 
 Same subject: Justification of increase 105 
 
 Same subject: Eight to advance rates 106 
 
 Same subject: Bight to earn 107 
 
 Same subject: Change in conditions 108 
 
 Jurisdiction over through routes and joint rates 112 
 
 Same subject: Establishment by carrier 115 
 
 Same subject: Right to favor own line 116 
 
 Same subject: What is satisfactory through route 118 
 
 Same subject: Right to withdraw through routes 118 
 
 Same subject: Obligation to furnish equipment 119 
 
 Same subject: Legal rate 119 
 
 Jurisdiction over routing and misrouting : In general 120 
 
 Same subject: Carriers' duty to transport 120 
 
 Same subject: Accustomed or natural route 121 
 
 Same subject: Cheapest available route 121 
 
 Same subject: Conflict in billing between rate and route 121 
 
 Same subject: Shipper's instructions 122 
 
 Same subject: Liability for misrouting 123 
 
 Jurisdiction over electric lines 124 
 
 Jurisdiction over business secrets 125 
 
 Jurisdiction over water carriers: Discrimination and rebates 126 
 
 Jurisdiction over allowances: In general 128 
 
 Same subject: Discrimination 130 
 
 Same subject: Specific allowances 131 
 
 Same subject: Legality of allowances 134 
 
 Same subject: Plant facility 136 
 
 Same subject: Allowances as rebates 138 
 
 Same subject: Criminal liability 139 
 
 SECTION 16 
 
 1. REPARATION 
 
 Jurisdiction of Commission. 140 
 
 Necessity of primary action by Commission 141 
 
vi CONTENTS 
 
 Necessity and effect of finding of unreasonableness 142 
 
 Power to award tort damage 145 
 
 Right to recover and necessity of protest 147 
 
 Necessity of first passing tariff rate 147 
 
 Parties entitled to recover 148 
 
 Statute of Limitations 149 
 
 Method of obtaining reparation 149 
 
 Court pleadings 150 
 
 SECTION 16a 
 Eehearings 162 
 
 SECTION 17 
 
 1. PROCBDUKB 
 
 In general 153 
 
 Complaint 154 
 
 Notice of complaint 156 
 
 Amending complaint 156 
 
 Hearing 157 
 
 Rehearing 157 
 
 Orders of the Commission 158 
 
 SECTION 18 
 Salaries of Commission ^ 159 
 
 SECTION 19 
 OflSce of the Commission 160 
 
 SECTION 20 
 
 1. REPORTS 
 2. THE CARMACK AMENDMENT 
 
 In general 167 
 
 Jurisdiction of Commission 169 
 
 Jurisdiction of state courts 169 
 
 Liability of initial carrier 170 
 
 Limitation of liability 170 
 
 Liability for negligence 173 
 
 Notice of loss 174 
 
 SECTION 21 
 Report by Commission 176 
 
 SECTION 22 
 
 1. REDUCED RATES 
 
 Charitable institutions 178 
 
 Returned shipments 179 
 
CONTENTS vii 
 
 SECTION 23 
 Jurisdiction of United States courts 181 
 
 SECTION 24 
 The Interstate Commerce Commission 181 
 
 MISCELLANEOUS ACTS 
 
 District Court Jurisdiction Act 182 
 
 Compulsory Testimony Act 183 
 
 Elkins Act 184 
 
 Expediting Act 185 
 
 Parcel Post Act 185 
 
 Boiler Inspection Act 186 
 
 Safety Appliance Act 187 
 
 Block Signal Act 187 
 
 Monthly Reports of Accidents Act 188 
 
 Hours of Service Act 188 
 
 Transportation of Explosives Act .189 
 
INTEODUCTION 
 
 It may be stated that almost from the time there was a 
 railroad in the United States regulation has been neces- 
 sary. The first railroad in the United States was the 
 Quincy Eailroad, built in 1826; then in 1827 the Mauch 
 Chunk, 9 miles long and costing $27,000, was constructed 
 in 63 days. The Baltimore & Ohio, 15 miles long and 
 using horse power, was built in 1830. The Mohawk & 
 Hudson was built in 1831 and was the first to use the loco- 
 motive. In 1835 there were in the whole United States 
 918 miles of railroad. 
 
 Now it is a curious thing that on June 14, 1839, 
 the first state board of railroad commissioners was 
 appointed by an act passed by the general assembly of 
 Rhode Island. Section 2 provided that it should be the 
 duty of the board of commissioners upon complaint or 
 , otherwise, whenever a majority of them should deem it 
 expedient, personally to examine into any or all of the 
 transactions or proceedings of any railroad that might 
 be established in the state. Two objects were to be 
 gained from such investigations: (1) to secure full and 
 equal privileges for the transportation of persons and 
 property in proportion to the distances any such persons 
 or property might be transported on any railroad; (2) to 
 inquire into any contract or agreement by which any 
 railroad company should attempt to transfer or give to 
 any steamboat company favors or preferences over any 
 such company or boat, whether as to freight or passen- 
 gers, contrary to the intent and meaning of the Act. 
 
 We see, therefore, that only thirteen years after the 
 first railroad was built it was considered necessary to 
 
2 THE ACT TO REGULATE COMMERCE 
 
 regulate the carriers. Other states followed, and as lines 
 were built it was found necessary to control them. Thus, 
 between 1839 and 1887 the following states created rail- 
 road commissions, in the order named: Rhode Island, 
 Vermont, New Hampshire, Connecticut, New York, 
 Maine, Tennessee, Ohio, Massachusetts, Minnesota, Illi- 
 nois, Michigan, Georgia, Virginia, Wisconsin, Missouri, 
 California, Iowa, South Carolina, Kentucky, Alabama, 
 and Kansas. 
 
 In 1887 the Interstate Commerce Commission was cre- 
 ated to regulate such traffic moving between the various 
 states as was not regulated by the state commissions. 
 The authority under which the Interstate Commerce 
 Commission was created and given its powers was known 
 as the Interstate Commerce Act. 
 
 The original act created a commission of five members 
 and gave it certain powers over railroads. The courts 
 soon held that the Commission had not been given the 
 rate-making power and it became evident that further 
 legislation was necessary if the Commission was ever to 
 benefit the public as was intended. In 1903 the Elkins 
 law was passed, which provided drastic punishment for 
 the giving of rebates or concessions from the rates. In 
 1906 an act was passed giving the Commission the right 
 to fix maximum rates for the future, which, together with 
 the power to suspend advances in rates given by the law 
 of 1910, has given to the Commission the power to en- 
 force one of the most elaborate systems of governmental 
 regulation ever devised. Its power is broad and is prac- 
 tically unlimited for the elimination of unreasonable 
 charges and unjust discrimination. 
 
 In the United States today there are approximately 
 260,000 miles of railroad, employing millions of men and 
 representing an investment of billions of dollars. The 
 magnitude of this business is so great that it cannot be 
 
INTRODUCTION 3 
 
 grasped by the average mind. The quick interchange 
 of commodities is so dependent upon the railroad and so 
 much a part of the business of every industrial establish- 
 ment that the importance of the transportation question 
 cannot be overestimated. The Interstate Commerce Act 
 has become the most magnificent instance of regulation 
 of great public utilities that modern civilization has been 
 able to develop. It is, therefore, of the utmost impor- 
 tance that one should be thoroughly acquainted with its 
 various provisions. He should know it by heart and he 
 should know in detail the construction which has been 
 given it. It is a regrettable thing to say that in the past 
 the traffic man has to a great extent neglected to familiar- 
 ize himself with the Interstate Commerce Act. 
 
 Up to very recently there had been no analysis made 
 of the principles governing traffic. This, coupled with 
 the fact that the Act itself was very long and intricate, 
 proved too much for any except the most ambitious. 
 It is now shown that there are something like 15,000 
 principles governing the movement of interstate traffic 
 and these have been classified and analyzed so as to be 
 easily accessible. In the following pages they have been 
 so condensed and simplified that whoever will take the 
 trouble carefully and conscientiously to study the subject 
 as therein discussed will receive an education that will 
 enable him to apply the Act with a good degree of under- 
 standing. 
 
 In this treatise the Act has been discussed section by 
 section, as this seems to be the most satisfactory method. 
 It wiU be found that in some cases the same subject is 
 treated in more than one section for the reason that in 
 amending the original Act to Eegulate Commerce from 
 time to time, the amendments were not always made to 
 the existing sections, but were made by putting in addi- 
 tional sections. For example, we find that Section 11 
 
4 THE ACT TO REGXJLATE COMMERCE 
 
 provides that the Commission shall consist of five mem- 
 bers; in Section 24, added June 29, 1906, it is provided 
 that the Commission shall consist of seven members. 
 
 In treating each section, reference is made to other 
 sections that bear upon the same subject. It must be 
 borne in mind that in a short treatise like this it is not 
 possible to treat all the points that might be considered 
 in the study of so large a subject as the Interstate Com- 
 merce Act. It has been the endeavor of the author to 
 set out briefly and clearly only tlie important principles. 
 
SECTION 1 
 
 Scope. — The first section is one of the most important, 
 since it is the one which defines the application of the 
 statute. For the exact language it will be necessary for 
 the reader to refer to the back of this book, where the 
 Act itself will be found. 
 
 The Act applies to any corporation or person engaged 
 in the transportation of oil or other commodity (except 
 water and natural and artificial gas) by means of pipe 
 lines exclusively or in conjunction with railroads or other 
 carriers; to telegraph, telephone, and cable companies, 
 whether wire or wireless; and to any common carrier 
 engaged in the transportation of persons or property 
 wholly by railroad or in conjunction with water carriers 
 when both are used under a common control, manage- 
 ment, or arrangement for a continuous carriage or ship- 
 ment from one state or territory of the United States or 
 the District of Columbia, to any other state or territory, 
 or to the District of Columbia, or from one place in a 
 territory to another place in the same territory, or from 
 one place in the United States to an adjacent foreign 
 country, or from any place in the United States through 
 a foreign country to any other place in the United States. 
 It also applies to the transportation of property shipped 
 from any place in the United States to a foreign country 
 and carried from such place to a port of transshipment, 
 or shipped from a foreign country to any place in the 
 United States, and carried to such place from a port of 
 entry either in the United States or in an adjacent for- 
 eign country. 
 
6 THE ACT TO REGULATE COMMERCE 
 
 It should be borne in mind that the Act applies to 
 interstate commerce or to foreign commerce only to the 
 extent provided for. 
 
 While the provisions of Section 1 just given specify 
 the classes of transportation agencies that are subject to 
 the Act, it may be well to note the most common indi- 
 vidual agencies that are subject to the Act. Among 
 these are the following: railroads, express companies, 
 pipe lines, sleeping-car companies, telegraph companies, 
 wireless companies, cable companies, electric railroad 
 companies, refrigerator lines, and water carriers when 
 operating in connection with rail carriers in the handling 
 of interstate traffic. 
 
 It will be noted that water carriers are subject to the 
 Act only in connection with rail carriers. It may be 
 helpful in getting a full understanding of this provision 
 to illustrate when a water carrier would and when it 
 would not be subject to the Act. A shipment moving 
 from New York to New Orleans by a boat line is not 
 subject to the Act, but if the shipment moves from Pitts- 
 burgh to New York by rail, and from New York to New 
 Orleans by water, on a through bill of lading from Pitts- 
 burgh to New Orleans, it is subject to the Act. This is 
 because in the latter case the boat line is used in con- 
 junction with a rail carrier under a common arrangement 
 in moving an interstate shipment. 
 
 The Act provides that it does not govern the movement 
 of shipments when entirely within a state. However, it 
 must be borne in mind that if the shipment, in moving 
 from one point in a state to another point in the same 
 state, passes out of that state at any point, the traffic be- 
 comes interstate and is hence subject to the interstate 
 commerce law. As an example, suppose a shipment were 
 moving from New York City to Albany, N. Y. If this ship- 
 ment moved from New York City to Weehawken, N. J., 
 
SECTION 1 7 
 
 for transportation via the West Shore Railroad, the ship- 
 ment would be interstate within the meaning of the Act 
 and therefore subject to tariff filed with the Interstate 
 Commerce Commission. Plowever, if the shipment moved 
 from New York City to Albany via the New York Cen- 
 tral & Hudson River Railroad, it would not pass out of 
 the state of New York and consequently would not be 
 subject to interstate tariffs, but would be intrastate 
 within the meaning of the word as used in the Act. It 
 will often be found that shipments moving between the 
 same points within a state may be interstate or intrastate 
 according to the route used. It is quite common to find 
 that shipments may move over one road and be intrastate 
 because the road is entirely within that state, while it 
 may be interstate over another road because the second 
 road passes out of the state en route. It is quite often 
 necessary, therefore, to know the exact route used in the 
 movement of a shipment in order to ascertain whether 
 it is interstate or intrastate. 
 
 On page 14 will be found definitions of some . of the 
 terms used in connection with the last part of Section 1. 
 For example, we find that the term "transportation" 
 does not mean simply the moving of freight from one 
 point to another, as might be supposed, but that it speci- 
 fies a number of things beyond what is generally consid- 
 ered as being included in the term "transportation" as 
 used in the Act. 
 
 Pipe lines. — The Interstate Commerce Act has placed 
 pipe lines under the authority of the Interstate Commerce 
 Commission. The Commission has investigated the rela- 
 tions between the pipe lines and has decided that they 
 are common carriers and must transport oil for all along 
 their lines without discrimination, and, like other car- 
 riers, must file tariffs of their rates. 
 
8 THE ACT TO REGULATE COMMERCE 
 
 Prior to the Hepburn Amendment of 1906, the pipe-line 
 companies had never been so considered. They have 
 never held themselves out to the world as such, but have 
 made it their business to buy oil at the producing well, 
 transport it by means of their own pipe lines across state 
 boundaries, and sell it in other states. They claimed to 
 be dealers in oil who use their own pipe lines solely to 
 convey their own property from state to state. For in- 
 stance, oil from Oklahoma points was transported by the 
 Oklahoma Pipe Line Company for the Prairie Oil and 
 Gas Company to McCurtin on the Oklahoma-Kansas state 
 line. There it was to be delivered to the Prairie Oil and 
 Gas Company, which transported it by its own line across 
 the southwestern corner of Arkansas to Ida, La., where 
 delivery was said to be made to the Standard Oil Com- 
 pany of Louisiana. This company transported the oil to 
 its refinery at Baton Eouge, La., where it was refined. 
 When it left Oklahoma, the oil was destined for storage 
 in Louisiana. The pipe-line companies contended there 
 was a breakage of transit at each state line and that the 
 transportation was not interstate and therefore not sub- 
 ject to the jurisdiction of the Commission. The Commis- 
 sion held that the stoppage in transit was not made in 
 good faith and that the intention of Congress was to 
 make all interstate pipe lines common carriers, and or- 
 dered them to file with the Commission schedules of their 
 rates and charges for the transportation of oil. 
 
 This case was appealed to the Supreme Court of the 
 United States. There it was held that, although prior 
 to the passage of the Hepburn Act, pipe lines might have 
 been private carriers, it was proposed* in that act to 
 provide that if they desire to continue in business, 
 they must be common carriers. Hence, at the present 
 time a pipe line stands on the same footing as a railroad. 
 It must publish and file its tariffs with the Interstate 
 
SECTION 1 9 
 
 Commerce Commission, designating its rates for the 
 transportation of oil. It must receive oil from whomever 
 tenders it and carry it to destination. It cannot discrim- 
 inate in rates between shippers, give rebates, charge a 
 higher rate to a farther distant point, or give facilities to 
 one and deny them to another similarly situated. It is in 
 all respects subject to the same limitations and restric- 
 tions as a railroad. 
 
 Common control, management, or arrangement. — One 
 of the provisions of the Act which has occasioned a con- 
 siderable amount of discussion has been that part of 
 Section 1 referring to water carriers. It should not be 
 understood, however, that Congress has not authority 
 over interstate transportation by water, because it does 
 have power to pass such legislation if it is nec- 
 essary to do so; but in the Interstate Commerce 
 Act it did not see fit to exercise its admitted 
 authority. The main purpose of the Act is to regulate 
 transportation by railroad. The regulation of water lines 
 was considered incidental and collateral and was in- 
 cluded in order that the regulation of railroads might be 
 effective and not subverted by an arrangement between 
 railroads and water lines. Carriers of interstate com- 
 merce by water, therefore, are subject to the Act only 
 in respect to traffic transported under a common control, 
 management, or arrangement with a rail carrier. By the 
 amendment of 1912, the Commission is given power to 
 couple up interstate water and rail carriers and order in 
 through routes and joint rates between such carriers, if 
 necessary. 
 
 It may be interesting to note the reason which under- 
 lies this exemption. As has been seen from a study of 
 the introduction to this treatise, the development of com- 
 merce has created t-he necessity of regulating rail car- 
 riers. The only carriers competing with the railroads are 
 
10 THE ACT TO REGULATE COMMERCE 
 
 those that operate on water. It has, therefore, been the 
 aim of the railroads to dominate their rival water car- 
 riers. Competition by water is the most potent method 
 of reducing rail rates, and it was therefore deemed wise 
 to leave this competition as a check on the rail carriers. 
 ■ Another reason for not restricting the water carriers 
 comes up in the case of foreign commerce. The ocean is 
 a highway, free to all. No franchise is needed to sail the 
 seas, nor is the ownership of a line of ships founded 
 either in law or in economics upon the theory of a monop- 
 oly which underlies the relation of the railroad to the 
 state. 
 
 The phrase "common arrangement" means an agree- 
 ment or understanding between connecting carriers with 
 respect to the transportation of merchandise and the 
 charges and divisions to be made therefor. 
 
 Some typical cases are as follows: A steamship com- 
 pany operated on the Great Lakes from Buffalo, New 
 York, to West Superior, Wisconsin. It contracted with a 
 shipper to protect^ a rate of 45 cents on iron from Emans, 
 Pennsylvania, to Winnipeg, Manitoba. The rate pub- 
 lished by the initial and delivering rail carriers was 49% 
 cents. The steamship company did not concur in this 
 rate. The railroads were not informed of the agreement 
 between the shipper and the steamship company for the 
 45-cent rate, and the bills of lading, shipping receipts, 
 and other documents called for a rate of 49% cents, and 
 specified the divisions that the initial and delivering car- 
 riers were to receive. This rate was collected. The 
 steamship company rebated the difference between the 
 49V2-cent rate and the 45-cent rate. No further proof 
 was sho-ftTi of any other undertaking or arrangement be- 
 tween the rail carriers and the water carriers. It was 
 
 'The term "protect" as here used means that the boat lines 
 promised th9.t the rate would not be higher than 45 centSt 
 
SECTION 1 11 
 
 held that the steamship company carrying wholly by 
 water was not shown to have entered into a "common 
 arrangement" with the rail carriers so as to make it sub- 
 ject to the Interstate Commerce Act, and could not be 
 convicted of rebating under the Elkins Act, and that the 
 mere agreement by an independent water carrier to ac- 
 cept freight from a connecting railroad and to transport 
 it for its own particular rate may be an "arrangement" 
 for continuous carriage, but it is not a "common arrange- 
 ment" within the meaning of the Act.^ 
 
 Broadly speaking, the Act does not apply to carriers 
 by water. To make such carriers subject to the Act it 
 must be shown that transportation partly by railroad and 
 partly by water is made under a common control, man- 
 agement, or arrangement for a continuous carriage or 
 shipment from one state or territory to another state or 
 territory.^ 
 
 Where steamship companies operating on the Great 
 Lakes file with the Interstate Commerce Commission 
 their joint tariffs, or their concurrence in tariffs filed by 
 the railroad companies, and carry for hire passengers 
 and freight under such joint tariffs over the water por- 
 tion of the through routes, there is engagement in trans- 
 portation in so far as both water and rail are used to 
 carry from one state to another, and there is within the 
 meaning of the Act as amended June 29, 1906, a common 
 arrangement made for a continuous shipment of passen- 
 gers and freight, whereby such companies have brought 
 themselves within the terms of the Act and are subject to 
 such of its provisions as are applicable to carriers under 
 such arrangement.* 
 
 "Mutual Transit Co. v. U. S., 178 Fed. 664. 
 'Mutual Transit Co. v U. S., 178 Fed. 664. 
 'Goodrich Transit Co. v, I. C. C, 190 Fed. 943, 959. 
 
12 THE ACT TO REGULATE COMMERCE 
 
 An order of the Interstate Commerce Commission re- 
 quired statistical information of certain water carriers as 
 to the routes of the carriers and their mileage; the 
 amount of trafl&c, both passenger and freight; mileage 
 and revenue statistics, together with a separation of 
 freights into the quantity of the various products trans- 
 ported, showing whether originating on the carrier's line 
 or received from a connecting line; and a general descrip- 
 tion of any separate business carried on by the carrier. 
 It was held that the Commission did not exceed its 
 authority as to the form of the reports and the system of 
 accounting described and that the Commission could re- 
 quire such reports to include statistics relating to port-to- 
 port state traffic.^ 
 
 Three carloads of potatoes, loaded in "heater" cars 
 at different stations on the line of the Bangor Eailway & 
 Electric Company, an electric railway, for shipment via 
 Bangor, Maine, and the Maine Central Eailroad, to 
 Hoboken, New Jersey, were damaged by freezing in 
 transit. Though the shippers intended a through ship- 
 ment to Hoboken, the Bangor Eailway & Electric Com- 
 pany issued bills of lading only over its own line, but 
 there was a through tariff rate from points of shipment 
 to destination, and the Maine Central Eailroad, in re- 
 ceiving the cars at Bangor, advanced to the Bangor 
 Eailway & Electric Company its proportion of the 
 through freight charges. It was held that the latter fact 
 is some evidence of a "common control, management, or 
 arrangement for a continuous carriage or shipment," as 
 defined by Section 1 of the Interstate Commerce Act, and 
 that therefore the Bangor Eailway & Electric Company 
 was as to such shipments originally within the scope of 
 the Act as amended by the Carmack Amendment and as 
 
 1. C. C. V. Goodrich Co., 224 U. S. 194, 211. 
 
SECTION 1 13 
 
 initial carrier was liable for tlie defaults of connecting 
 carriers." 
 
 The publication of proportional rates by rail carriers 
 and a lake steamsMp company covering through inter- 
 state transportation, the actual movement of traffic upon 
 through biUs of lading, and the prepayment of freight 
 charges, necessitating an accounting between the car- 
 riers, constitute evidence of a common arrangement for 
 a continuous carriage^ 
 
 Adjacent foreign country. — The word "adjacent" as 
 used in the Act to modify the words "foreign country" 
 means a country adjacent in the sense of there being sub- 
 stantial continuity of rails. Thus, Cuba is not an "adja- 
 cent foreign country" within the meaning of the Act. 
 Canada and Mexico are "adjacent foreign countries" as 
 specified in the Act. 
 
 While the discretion of the Commission in the enforce- 
 ment of the Act cannot be interfered with by mandamus, 
 yet an action may be taken to compel the Commission to 
 take jurisdiction over carriers operating between Alaska 
 and the United States and between Alaska and adjacent 
 foreign countries, where the Commission has -refused to 
 do so pursuant to its belief that it had no authority over 
 such carriers.^ 
 
 Intrastate commerce. — ^While the power of Congress to 
 regulate the field of interstate commerce is supreme, it 
 may fail to exercise such power and the state may have 
 power to act. In other words, simply because the Inter- 
 state Commerce Act exists, it does not follow that Con- 
 gress has so occupied the field of interstate commerce as 
 to preclude any action whatever by the states. But 
 where Congress or the Interstate Commerce Commission 
 
 •Ross V. M. C. R. R. Co. (Me., 1914), 90 Atl. 711. 
 'Flour City S. S. Co. v. L. V. R. R. Co., 24 I. C. C. 179. 
 •I. C. C. V. H. S. Co., 224 U. S. 474. 
 
14 THE ACT TO REGULATE COMMERCE 
 
 has passed a regulation covering a specific subject, the 
 state can no longer legislate concerning it. Of course, 
 traffic which is purely intrastate, that is, which originates 
 within the boundary of a state and is destined to a point 
 in the same state and in transit does not pass outside, is 
 subject only to legislation by the state. Neither Congress 
 nor the Interstate Commerce Commission has any power 
 to legislate concerning it, although, as we have seen, the 
 states may sometimes pass laws that affect interstate 
 traffic. Thus, we have laws that trains shall not sell ciga- 
 rettes or liquors within the boundaries of certain states, 
 that locomotives must be equipped with a certain kind of 
 headlight, that passenger fares shall not exceed 2 cents 
 a mile, etc. It very often happens that a certain regula- 
 tion, such as one to use a certain kind of headlight, may 
 be forced upon the carrier in one state, while a neighbor- 
 ing state declares its use illegal. These state laws, of 
 course, are burdensome to the carrier. 
 
 The Supreme Court, however, recently held, in what is 
 known as the Shreveport case, that when a system of 
 state rates is of such a character that to reduce them 
 would of necessity mean the reduction of interstate rates, 
 the state authorities had no power to take such action. 
 In other words, where state rates were so low as to dis- 
 criminate against reasonable interstate rates, the state 
 rates had to give way. 
 
 Just what effect this decision is going to have in the fu- 
 ture it is hard to determine. Its logical effect would 
 seem to be that whenever a state rate is so tied up with 
 an interstate rate that the state rate cannot be changed 
 without affecting the interstate rate, such change cannot 
 be made without the consent of the Interstate Commerce 
 Commission. 
 
 Definitions.— In stating to what facilities, privileges, 
 9,nd instrumentalities the Act applies, certain definitions 
 
SECTION 1 15 
 
 are made. The reader, however, is cautioned to remem- 
 ber that the Act has been construed to cover facilities 
 and privileges not specifically enumerated. As a matter 
 of fact, every instrumentality, facility, or privilege con- 
 nected with interstate commerce is subject to the Act. 
 The term "railroad" is defined to include all bridges and 
 ferries used in connection with any railroad, all the road 
 used by any railroad, whether owned or operated under 
 a lease or other contract, and all switches, spurs, tracks, 
 and terminal facilities of every kind used or necessary 
 in transportation, including freight depots, yards, and 
 houses. The term "transportation" includes cars and 
 other vehicles, and all instrumentalities and facilities of 
 shipment or carriage, irrespective of ownership or of any 
 contract for the use therefor. It includes all service in 
 connection with the receipt, delivery, elevation, and 
 transfer in transit, valuation, refrigeration, icing, stor- 
 age, and handling of property transported. It further 
 provides that it is the duty of every carrier subject to the 
 Act to provide transportation upon reasonable request 
 therefor, to establish through routes and reasonable rates 
 applicable thereto, and to provide reasonable facilities 
 for operating through routes and with respect to the ex- 
 change and interchange of cars. 
 
 Charges. — ^It is provided that all charges for any serv- 
 ices rendered in the transportation of passengers or prop- 
 erty or for the transmission of messages by telegram or 
 telephone or cable, or in connection therewith, shall be 
 just and reasonable, and every unjust and unreasonable 
 charge for such service is prohibited. The question as to 
 what is a just and reasonable rate is the most difficult one 
 raised by any section of the Act. 
 
 As will be seen by the discussion under the powers of 
 the Commission, in the determination of a reasonable 
 rate there are dozens of elements that must be consid- 
 
16 THE ACT TO REGULATE COMMERCE 
 
 ered. The duty of initiating rates rests witli the carrier. 
 If, however, the carrier does not establish a reasonable 
 rate, the authority of the Commission can be invoked to 
 determine the justness of the rate. However, under Sec- 
 tion 15, the carrier is entitled to have a finding by the 
 Commission that any particular charge is unreasonable 
 and unjust before it is required to change such charge.^ 
 
 The question of what is a reasonable rate presents the 
 most difficult question to determine. A railroad is en- 
 titled to such a schedule of rates as will permit it to earn 
 a fair return upon the capital invested. Perhaps the best 
 discussion in this matter is found in the following case. 
 
 In Coal & Coke Ey. Co. v. Conley, ^° the court said: 
 
 "What constitutes a fair and reasonable return for the 
 use of invested capital has never been definitely settled 
 by the adoption of any particular standard for all pur- 
 poses and to govern under all conditions. It seems to be 
 difficult, if not impossible, to lay down any rule or prin- 
 ciple that will operate equitably and justly under all 
 circumstances. Ordiaarily, the return generally realized 
 upon similar investments in the locality of the one under 
 consideration is deemed fair and guaranteed to the in- 
 vestor, and the estimate is based upon the amount 
 actually invested in good faith, fictitious valuations, indi- 
 cated by overissues of stocks and bonds, and not repre- 
 senting actual money, being rejected. "^^ 
 
 The mere fact that a corporation has outstanding 
 bonds and stocks in large amounts, on which holders 
 claim interest and dividends, is by no means conclusive 
 
 •I. C. C. V. Stickney, 215 U. S. 98. 
 
 "W. Va. (March 8, 1910), 67 S. E. 613, p. 639. 
 
 "Smyth V. Ames, 169 U. S. 466, 544; 18 Sup. Ct. 418; 42 L. Ed. 
 819; Covington, etc., Co. v. Sandford, 164 U. S. 578; 17 Sup. Ct. 398; 
 41 L. Ed. 560; Dow v. Beidelman, 125 U. S. 680; 8 Sup. Ct. 1028; 
 31 L. Ed. 841 ; Stanislaus County v. Canal & Irrigation Co., 192 U. S 
 201; 24 Sup. Ct. 241; 48 L. Ed. 406; Spring Valley Water Works v. 
 Schottler, 110 U. S. 347; 4 Sup. Ct. 48; 28 L. Ed. 173; Railroad Com. 
 Cases, 116 U. S. 307; 6 Sup. Ct. 334, 338, 1191; 29 L. Ed. 636. 
 
SECTION 1 17 
 
 of the value of the property or the amount actually in- 
 vested. Exorbitant rates cannot be exacted from the 
 public for the sole reason that persons interested in a 
 corporation have contracted with it and with one another 
 for profits in excess of that which amounts to a reason- 
 able and fair return on the money actually invested or 
 the equivalent of the actual value of the plant. The cap- 
 italization or actual cost may far exceed the utmost value 
 of the company's property, for some reason. The plant 
 may have been built at an extravagant and wasteful cost, 
 or may not be well adapted to the uses for which it was 
 intended. Under exceptional and peculiar circumstances, 
 what would be ordinarily a reasonable rate of profit on 
 the entire investment is disallowed, as being more than 
 the service is worth to the public and therefore unjust 
 to it. If, in construction or purchase, more money has 
 been put into a plant than is required for one adequate 
 to the demands of the community, the usual return on 
 such sum would be more than the service rendered the 
 public worth. Both the public and the public service 
 investor are to be considered, and justice done to each.^^ 
 The result of these and other decisions is that almost 
 every case must be dealt with in the light of its own 
 peculiar facts and circumstances, it being impossible to 
 lay jiown any rule for invariable application to all. In 
 respect to the rate of compensation, there ought to be less 
 uncertainty; but as to it, the circumstances of each case 
 seem to have some bearing; and, besides, what is said on 
 the subject is often somewhat confused with the discus- 
 sion of the value. This is especially true of those cases 
 in which the value of the service to the public is dis- 
 cussed. 
 
 "Smyth V. Ames, 169 U. S. 446, 18 Sup. Ct. 418, 42 L. Ed. 819; 
 CoAdngton, etc., Co. v. Sandford, 164 U. S. 578, 17 Sup. Ct. 198; 41 
 L. Ed. 560; San Diego, etc., Co. v. Jasper, 189 U. S. 439, 23 Sup. Ct. 
 671, 47 L. Ed. 892. 
 
18 THE ACT TO REGULATE COMMERCE 
 
 In almost every case, it is possible to begin tbe 
 discussion from the standpoint of either party, or to 
 begin at each end and conclude in the middle. However, 
 it seems to be generally held that in the absence of pecu- 
 liar and extraordinary conditions, such as a more costly 
 plant than the public service of the community requires, 
 or the erection of a plant at an extravagant cost, or the 
 purchase of one at an exorbitant or inflated price, the 
 actual amount of money invested is to be taken as a basis, 
 Tipon this a return must be allowed equivalent to that 
 which is ordinarily received in the locality in which the 
 business is done, upon capital invested in similar enter- 
 prises. In addition to this, consideration must be given 
 to the nature of the investment, a higher rate being re- 
 garded as justified by the risk incident to a hazardous 
 investment. From this it is obvious that the courts have 
 not, and cannot, establish any particular rate for all con- 
 cerns, all classes of business, and all communities, as a 
 limit upon the powers of the legislature to regulate it. 
 To some extent, therefore, every case must stand upon 
 its own circumstances in respect to the rate to be allowed 
 as well as the valuation upon which it is to be calculated; 
 but the rate is obviously affected in a lesser degree by 
 peculiar circumstances than the valuation to which it is 
 applicable. As we have said, the courts do not establish 
 rates; the extent of their power is to nullify rates when 
 found to be so low as to work confiscation of property or 
 deprivation of the equal protection of the laws.^* 
 
 In State v. N. P. Ey Co.,^* the North Dakota Supreme 
 Court said: 
 
 "Wilcox V. Gas Co., 212 U. S. 19; 29 Sup. Ct. 148; 63 L. Ed. 371, 
 382; Knoxville v. Water Co., 212 U. S. 1; Stanislaus County v. Water 
 Co., 192 U. S. 201; 24 Sup. Ct. 241; 48 L. Ed. 406; Land Co. v. Jasper, 
 189 U. S. 439; 23 Sup. Ct. 571; 47 L. Ed. 892; Reagan v. Loan & 
 Trust Co., 154 U. S. 362; 14 Sup. Ct. 137; 38 L. Ed. 1014. 
 
 "N. D. (1909), 120 N. W. 869, affirmed 216 U. S. 579, p. 871. 
 
SECTION 1 19 
 
 "For the purpose of showing the unreasonableness of 
 rates fixed, will defendant be permitted to single out the 
 one commodity to which the rates apply, and prove, as 
 it has attempted to do in this case, that the transporta- 
 tion thereof is a losing proposition to the carrier; or 
 must it not show that if such rates are enforced it will be 
 unable from the total freight receipts to earn a sum 
 above operating expenses sufficient to yield a fair and 
 reasonable profit upon its investment, provided the road 
 was economically and efficiently constructed and oper- 
 ated?" 
 
 Eailroads are the private property of their owners and 
 while from the public character of the work in which 
 they are engaged the public has the power to prescribe 
 rules for securing just and efficient service and equality 
 between the shippers and communities, yet in no proper 
 sense is the public a general manager. What is a reason- 
 able freight rate cannot, strictly speaking, be the subject 
 of agreement between carriers and shippers, or between 
 carriers and the Interstate Commerce Commission. If in 
 a given case, after weighing all feasible contentions by 
 the parties, the Commission is clearly of the conviction 
 that the rates in effect are wrong, it is its duty to substi- 
 tute for those rates others which it believes to be right, 
 but it is not required to interfere unless clearly of the con- 
 viction that the schedule in effect is unlawful. A just 
 and reasonable rate must be one which respects alike the 
 carriers' interests and the character of the traffic. The 
 words "just and reasonable" imply the application of 
 good faith and fairness, of common sense and a sense of 
 justice in accordance with the given condition of facts. 
 They are not fixed, unalterable terms. Their meaning 
 implies the exercise of judgment. 
 
 In fixing a rate, however, the Commission must be con- 
 scious in its consideration of its effect upon the policy of 
 
20 THE ACT TO REGULATE COMMERCE 
 
 the railroads and ultimately upon the welfare of the state. 
 The country cannot afford to have poor railroads ineffi- 
 ciently equipped, unsubstantially built, and carelessly 
 operated, but in the giving of service the railroad man- 
 agement should be the most progressive. It should have 
 wide latitude for experiment. It should have such en- 
 couragement as would stimulate the imagination of both 
 the engineer and investor. However, it must be borne in 
 mind that the Government is not the railroad's manager 
 and neither is the Commission, and no matter what the 
 revenue the railroads may receive, there is no control 
 upon its expenditure, no improvement directed, and no 
 economy enforced.^^ 
 
 Freight rates cannot be made solely with reference 
 to the value of the article transported or with reference to 
 the loss and damage claims arising from transportation. 
 The carrier is entitled to take into consideration the occu- 
 pancy of its equipment and facilities, or, in other words, 
 to charge for the service rendered. This charge for the 
 service rendered may be based upon the rate per ton per 
 mile, which is most helpful in connection with dense, 
 heavy articles. The value of the service and the reason- 
 ableness of the rate may be tested by means of the rate 
 per car per mile, where articles of the same relative 
 weight, density, direction, and volume of movement are 
 in question. But generally the ultimate test with the 
 carrier itself must be the return for the occupation and 
 use of its equipment and facilities. 
 
 The American railroad rate has always been recognized 
 as covering the full service which the carrier gives — ^fur- 
 nishing the car and a proper place at which to load it, 
 the conveyance of that loaded car, and its terminal deliv- 
 ery. In America the charge for these various services 
 is not broken up into its component parts and a charge 
 
 "Advances in Rates — Western Case, 20 I. C. C. 307. 
 
SECTION 1 21 
 
 imposed for each, as in England. The rate which must be 
 published is a complete rate, which includes not only a 
 charge for the haul but a charge for the use of the ter- 
 minals at both ends of the line. 
 
 There are dozens of elements which have been consid- 
 ered in the fixing of reasonable rates. Some naturally 
 have been given greater weight than others. The more 
 important have been as follows: the bona fide invest- 
 ment of the carrier, its capitalization, car-mile or train- 
 mile revenue, cost of operation, cost of service, distance 
 of haul, character of equipment furnished, fixed charges, 
 long continuance of a prior low rate, competition of mar- 
 kets, competition by other railroads or by water carriers, 
 necessity for more revenue, character of improvements, 
 previous haul on "Taw material where the manufactured 
 product is shipped out, profit of the shipper, reproduc- 
 tion value of the railroad, risk of loss or damage, size of 
 community served, value of commodity hauled, value of 
 service rendered, volume of traffic, and weight and char- 
 acter of shipment. 
 
 As a practical proposition, the proof concerning the un- 
 reasonableness of individual rates is often different from 
 that pertaining to an entire system of rates. The invest- 
 ment of the carrier, for instance, in carrying a specified 
 kind of traffic, such as piano traffic, cannot be ascertained; 
 so in such instances the most common method of proof is 
 to compare the rate attacked with rates on similar com- 
 modities transported under similar conditions, either by 
 the defendant carrier or by other railroads. Of course, 
 on heavy commodities, such as coal, lumber, and the like, 
 where such traffic constitutes from one-third to two-thirds 
 of the entire freight traffic of the carrier, accountants 
 often endeavor to ascertain the investment of the carrier 
 in such traffic, and the actual cost of the service. If such 
 statistics are accurately ascertained, they are very im- 
 
22 THE ACT TO REGULATE COMMERCE 
 
 portant in the determination of what is a reasonable rate 
 for such traffic. 
 
 At least one of these elements, or all of them together 
 with many others, may be considered in the fixing of any 
 one particular rate. Generally speaking, however, the 
 following is true: Once the comparative cost for various 
 services is learned, a schedule of rates may be made 
 which will approach justice as to the services. Supple- 
 ment this with scientific classification of freight, giving 
 due weight to all the various factors, such as value, bulk, 
 and hazard, especially to value; add return for use of 
 plant, and force is given to every factor.^® 
 
 It should be noted that the rates of telephone and tele- 
 graph companies and the like rest upon a somewhat dif- 
 ferent basis from that of rates of railroads. However, as 
 such companies are public-service companies and are 
 subject to the provisions of the law that prohibit undue 
 preference and unjust discrimination on any grounds 
 whatsoever, it is manifest that nothing but a difference 
 in the services rendered or in the facilities furnished 
 would justify any difference in the charges exacted. 
 The telegraph and telephone companies are permitted to 
 classify their messages into day, night, unrepeated, etc., 
 and to enter into contracts for the exchange of services 
 with common carriers. 
 
 Jurisdiction of Commission over classification. — ^Inas- 
 much as the Act confers specifically upon the Commission 
 the power to regulate classification, it may be well to 
 examine briefly into the subject. As the reader knows, 
 classification is that arbitrary division of freight into 
 classes by which a rate is provided for each class.^^ 
 It is a matter of extreme importance into what class 
 
 "Advances in Rates — Western Case, 20 I. C. C. 307. 
 "The subject of Freight Classification is fully explained in the 
 treatise on that subject. 
 
SECTION 1 23 
 
 commodities are placed, because in tlie absence of a spe- 
 cific commodity rate tbe class rate, that is, tbe rate 
 dependent upon the classification, governs. In tbe ab- 
 sence of statutory restriction, a carrier is entitled to es- 
 tablish reasonable rules and regulations governing the 
 manner and form in which it will receive such articles 
 of commerce as it is bound to carry, as well as the manner 
 in which they shall be packed and prepared for shipment, 
 so that they may be delivered with convenience, safety, 
 and dispatch. The carrier has also the power to alter 
 and modify such rules from time to time as it may deem 
 proper and expedient upon reasonable notice to the 
 public.^^ 
 
 Where the classification primarily affects and controls 
 the rates or charges demanded or collected by the carrier, 
 or publishes the regulations or practices affecting rates, 
 the Commission is authorized to pass upon such rates, 
 charges, regulations, or practices.^^ But a classification 
 will not be changed by the Commission unless it fairly 
 appears that a particular article is not rated with other 
 articles similar in value, weight, and other essential 
 transportation qualities. 
 
 The Commission, of course, has the power to determine 
 the reasonableness of the difference made between the 
 rates on various kinds of commodities. It cannot say, 
 however, that a rate shall be fixed so as to meet the re- 
 quirements or needs of any body of shippers in their 
 efforts to reach a given market; nor can it establish rates 
 upon any articles so low that they will not be reason- 
 able. It cannot fix an entire schedule of rates 
 which will give an inadequate return upon the fair value 
 of the property used in the service given. There is, how- 
 ever, a zone within which it may properly exercise "the 
 
 "U. S. V. Ore. E. E. & N. Co., 59 Fed. 975, 979. 
 "Nat'l Hay Ass'n v. M. C. E. E. Co., 19 I. C. C. 34, 38. 
 
24 THE ACT TO REGULATE COMMERCE 
 
 flexible limit of judgment which belongs to the power to 
 fix rates." However, the Commission will not approve 
 the imposition by carriers of conditions which would 
 benefit one or few shippers and which might injure 
 others. In other words, the same rules apply which gov- 
 ern the rate, because the classification is inseparably a 
 part of the rate. 
 
 In this connection it should, however, be noted that 
 very often carriers publish so-called "commodity rates." 
 These are rates applying to the specific commodity 
 named. The naming of such a rate takes the commodity 
 referred to out of the classification, and the shipment of 
 that commodity is governed by the commodity rate tariff 
 and not by the classification, so far as the rates are con- 
 cerned, although the rules of the classification often gov- 
 ern to some extent. 
 
 In the formation of a classification the rules, regula- 
 tions, and charges thereunder must be made with reason- 
 able regard for the nature of the commodity transported 
 and without undue discrimination as to localities or ship- 
 pers.^" Also, in all classifications consideration must be 
 given to what may be termed public policy. There is an 
 advantage to the community in having some kinds of 
 freight carried at a smaller rate than other kinds. How- 
 ever, the fact that certain traffic is hauled in train-load 
 lots while other traffic moves in carloads must not be 
 made the basis of a difference in rates. Carriers, how- 
 ever, may make a difference between carload and less- 
 than-carload shipments. In forming a classification no 
 one consideration is controlling. Bulk, value, liability to 
 waste or injury in transit, weight, form in which ten- 
 dered, etc., must be taken into consideration. It is not 
 an exact science, nor may the rating accorded a particu- 
 lar article be determined alone by the yardstick, the 
 
 "Sunderland Bros. Co. v. S. L. & S. F. R. R. Co., 23 I. C. C. 259, 262. 
 
SECTION 1 25 
 
 scales, or the dollar; the volume and desirability of the 
 traffic, the hazard of carriage, and the possibility or prob- 
 ability of the misrepresentation of the article are consid- 
 erations of prime importance. At best it is but a group- 
 ing, and when the approximate result from it is not found 
 to cause the exaction of an unreasonable or a discrimina- 
 tory charge it will not be disturbed.^^ 
 
 Bills of lading. — It is the duty of carriers to establish 
 and observe reasonable regulations, and to issue bills of 
 lading or receipts for property received. The Commis- 
 sion has authority to consider and determine the reason- 
 ableness of regulations and practices with respect to the 
 issuance and substance of bills of lading, and to deter- 
 mine and prescribe what regulations and practices are 
 just and reasonable. The Commission did in fact hold a 
 hearing on what would be reasonable provisions to insert 
 in a bill of lading. It drew up two forms of what is 
 known as the uniform bill of lading, which it submitted 
 for adoption to the carriers, but it did not order them to 
 adopt these forms. Such bills of lading are de- 
 signed for use with respect to miscellaneous freight 
 and general merchandise, but are not intended to sup- 
 plant bills issued on particular commodities 'requiring 
 exceptional provisions, such as live stock and perishable 
 property. However, having approved these bills of 
 lading does not preclude the Commission from passing 
 independent judgment upon any of their provisions.^^ 
 
 Same subject: Duty of carrier to issue. — It is the 
 duty of carriers to issue bills of lading or similar receipts 
 for the transportation of property entrusted to them. 
 Bills of lading are generally for local movements, through 
 movements, or export or import movements, and they 
 
 "'Foreat City Fteight Bureau v. Ann Arbor R. E. Co., 18 I. C. C. 
 205, 206. 
 "'14 I. C. C. 351, 355. 
 
26 THE ACT TO REGULATE COMMERCE 
 
 cover passage by water as well as by rail. A railroad 
 formerly was not compelled to issue a bill of lading cov- 
 ering shipment over a connecting carrier, but could limit 
 its liability and issue a bill of lading for only its own line. 
 The Carmack Amendment (discussed on page 167) prac- 
 tically compels a carrier to issue a through bill of lading, 
 because it makes the initial carrier responsible for any 
 damage occurring to the shipment on the line of a con- 
 necting carrier and provides that no provision of the bill 
 of lading shall exempt it from such liability. There is no 
 legal obligation on a rail carrier to give a through bill of 
 lading covering movement by water beyond its line 
 until the Commission, under the amendment of 1912, has 
 made such a requirement. Such practices, however, are 
 of great advantage to shippers, and if given in the name 
 of one boat line should be given in the name of other lines 
 which are similarly circumstanced. 
 
 A railroad may entirely destroy the export traffic of 
 a port by refusing to issue through bills of lading, 
 and to say that it may exercise this great power wantonly 
 and arbitrarily is contrary to the spirit and letter of the 
 Act. If the rail carrier makes a rate and issues a bill of 
 lading for shipside delivery at a port, that rate and a sim- 
 ilar bill of lading should be open to all who conform to its 
 reasonable conditions. A railroad cannot adopt a policy 
 or practice which will put its facilities and rates at the ex- 
 clusive service of one line of steamships or of one set of 
 shippers patronizing that line.^^ 
 
 Questions very frequently come up as to the duty to 
 issue bills of lading at transit points, or one bill of lading 
 for several shipments. Commodities such as grain are 
 carried from the farm to some elevator or mill located 
 at a designated transit point and there cleaned, sorted or 
 milled, and sent through to destination. Tariffs very fre- 
 
 "Mobile Chamber of Commerce v. M. & 0. R. R. Co., 23 I. C. C. 417. 
 
SECTION 1 27 
 
 quently provide that the shipment has to pay the local 
 rate up to such point and when shipped out from there a 
 through rate is assessed from the originating point to 
 destination. The shipper pays the through rate less the 
 local to the transit point and not the sum of the local 
 rates from the originating point to the transit point and 
 from there to destination, which would be considerably 
 higher. The rule is therefore laid down that when car- 
 riers are parties to a milling-in-transit privilege it is 
 proper for the inbound carrier to issue and sign the bills 
 of lading for the outbound movement, because since the 
 records of the inbound shipment are in its possession, in 
 no other way could the transit privilege be protected 
 against abuse. 
 
 Most classifications contain a provision that when the 
 minimum carload weight or more of one article is shipped 
 in one day in separate shipments by one consignor to one 
 consignee and covered by one bill of lading, the rate for a 
 carload shall apply on the entire lot, although it may be 
 less than two or more carload lots. It must be borne in 
 mind that to take advantage of this rule in the classifica- 
 tion a separate bill of lading must not be taken out for 
 each shipment, but the railroad agent must be requested 
 to make out one bill for both shipments. 
 
 Same subject: Construction. — ^It must be noted that 
 the bill of lading is little more than a receipt for the 
 goods to be transported and nothing obnoxious 'to the 
 law can be incorporated into it. It must be plain and 
 definite in all its provisions and must clearly state the 
 liability imposed. For instance, when a car is weighed 
 at origin and the weight is stated in the bill of lading, 
 the shipper has a right to rely on that weight subject to 
 correction only by proof of the correct weight. The state- 
 ments in the bill of lading are only prima facie. They 
 
28 THE ACT TO REGULATE COMMERCE 
 
 are not controlling, but, as in the case of any other re- 
 ceipt, it may be shown that the actual facts are different. 
 
 Any provision in a bill of lading is outside of the tariff, 
 and therefore in no sense a limitation upon the right of 
 the shipper to have his commodity transported in a man- 
 ner and at the rates specified in the rate schedule. Very 
 often there is a conflict between the rate and the route 
 specified in the bill of lading; that is, through some error 
 or mistake the rate specified in the bill of lading does not 
 apply via the route indicated. In case there is an 
 inconsistency between a rate and a route when both 
 are named in the bill of lading furnished by the shipper, 
 the carrier should request of the shipper which one is to 
 be followed. If the initial carrier fails to inquire of the 
 shipper and routes the freight over a route which car- 
 ries a higher rate than shown in the bill of lading, it is 
 responsible for misrouting.^* 
 
 Tickets. — ^A carrier must similarly enforce reasonable 
 regulations governing tickets and the privileges available 
 thereunder. This applies to such things as stop-over priv- 
 ileges, round-trip tickets, and commutation fares, excur- 
 sion fares, mileage tickets, and the like. While, as will 
 be seen, the shipper of freight is presumed to know the 
 various tariff regulations, it does not appear that the pas- 
 senger is held to as strict an accountability of the rules 
 governing tickets. Thus, where tickets must be presented 
 for signature to the carrier's agent at various places to 
 secure privileges or for validation and the like, and 
 through an error of the carrier's agent the rules are not 
 complied with and the passenger is thereby compelled to 
 pay an additional charge, damages will be awarded for 
 such error. 
 
 Baggage. — The carriers have the right to make reason- 
 able regulations concerning the carrying of baggage. 
 
 "Block Pollack Iron Co, v. H. E. & W. T. R. R. Co., 19 I. C. C. 505. 
 
SECTION 1 29 
 
 Thus, it is not undue discrimination to carry free 150 
 pounds of baggage for a passenger as against the many 
 passengers who travel without baggage. The carriers 
 may also, within reasonable bounds, limit the size of 
 sample trunks and the like in order to exclude bulky or 
 cumbersome shapes that occupy an undue proportion of 
 space compared with their weight. The carriers have 
 also a right to limit the amount of free baggage to 150 
 pounds, and to charge extra for baggage over that 
 weight. 
 
 Facilities. — It is also made the duty of the carrier to 
 establish and enforce just and reasonable regulations con- 
 cerning the furnishing and using of facilities. Facilities, 
 of course, are almost as numerous as the instrumental- 
 ities of transportation. In general, however, facilities 
 belong to one of three classes: those furnished at the 
 beginning of transportation, during transportation, or at 
 delivery. The most important facility, of course, that 
 the carrier furnishes is the car which moves the com- 
 modity. It was perhaps discrimination in the furnishing 
 of cars as much as anything that led to the passage of 
 the Interstate Commerce Act. It is very obvious that 
 by neglecting to furnish cars or by delay in transporting 
 them a shipper can be irretrievably injured, and as a 
 matter of fact such has very frequently been the case. 
 The question of car facilities has come up more often in 
 the case of coal-mining companies than in any other 
 particular industry. Various methods have been adopted 
 by which it has been attempted to give one mine more 
 cars than another. After a great deal of litigation it has 
 been well established that most of the methods of dis- 
 tributing coal cars in effect by the various railroads were 
 wrong in that certain favored mines secured relatively 
 more cars than their competitors. The Interstate Com- 
 merce Commission, however, has quite effectively de- 
 
30 THE ACT TO REGULATE COMMERCE 
 
 stroyed all such diserimination, so that today, on the 
 whole, coal cars are equitably distributed. 
 
 During transportation the principal facilities that are 
 used are transit, elevation, and compr'ession. Transit is 
 the privilege of holding some product en route to permit 
 it to be manufactured into a finished article and 'have 
 such finished article reshipped at the balance of the 
 through rate. An example of this would be in the case of 
 transit on logs. They are frequently brought into the 
 mill, manufactured into lumber, and reshipped. Com- 
 pression is the privilege extended to the shipper of cotton, 
 by means of which the raw cotton is taken into the transit 
 point, compressed, baled, or ginned, and reshipped at the 
 balance of the through rate. Elevation applies to grain 
 and is the privilege of bringing the newly harvested grain 
 into the transit point where it is cleaned, clipped, and 
 sorted. Concentration is another privilege very fre- 
 quently given, which permits the jobber in eggs, for in- 
 stance, to draw his eggs in from the surrounding country 
 and reship them out. Other privileges and facilities ex- 
 tended during transportation are reconsigned, refrigera- 
 tion, substitution of tonnage, and the like. The principal 
 facilities at destination are switching, wharfage, and 
 weighing. In extending these the carrier can make rea- 
 sonable regulations. It cannot, however, create any that 
 will discriminate against persons equally situated; but 
 the facilities extended must be open impartially. 
 
 Sometimes these facilities are extended and performed 
 by the railroads themselves; sometimes they are per- 
 formed by independent agencies or by the shipper. In 
 the latter case, an allowance is made for such service by 
 the railroad. In other words, it pays so much for the 
 service. Making these allowances has furnished a very 
 fruitful field for rebating, but the Commission is slowly, 
 yet surely, stamping it out. 
 
SECTION 1 31 
 
 Free transportation. — Section 1 is intended to limit the 
 extent to wliich free transportation can be given by tbe 
 railroads. Before the passage of this Act the railroads 
 lost millions of dollars a year through the promiscuous 
 giving of passes. It might be said that almost anyone 
 of any consequence in the country could have a pass. 
 After the strict enforcement of the law prohibiting free 
 transportation, all these passes were called in, with the 
 result that the railroads gained millions of dollars in 
 revenue. Generally speaking, it prohibits an interstate 
 carrier from giving free transportation to any person ex- 
 cept its officers and employes, ministers, traveling secre- 
 taries of railroad Y. M. C. A.'s, inmates of charitable in- 
 stitutions, persons exclusively engaged in charity work, 
 destitute and homeless persons, inmates of soldiers' and 
 sailors' homes, caretakers of perishable property, em- 
 ployes of sleeping and express cars, linemen of telegraph 
 or telephone companies, railway mail employes, post- 
 office, customs, and immigration inspectors, persons in- 
 jured in wrecks, cases of general epidemic, etc. Any 
 carrier violating this provision of the Act can be fiiied 
 not less than $100 and not more than $200; and the person 
 using the transportation in violation of the Act is sim- 
 ilarly guilty. This paragraph, however, should be read 
 in connection with Section 22, which also contains provi- 
 sions concerning free transportation. It should be ob- 
 served that the law is not by any means a dead letter, 
 and that prosecutions have been brought against persons 
 riding on passes to which they were not entitled.^^ 
 
 Where a railroad employe is entitled to receive a pass, 
 gets one, and delivers it to a friend who rides on it, he is 
 guilty as well as the friend, because the statute intends 
 that all persons making use of any interstate free pass 
 are liable, unless excepted by the terms of the Act, and 
 
 »U. S, V, Martin, 176 Fed. 110; U. S, v. Williams, 159 Fed. 310. 
 
32 THE ACT TO REGULATE COMMERCE 
 
 if the person wlio uses the pass is not so excepted, the 
 person who gives him the pass, even if he himself could 
 use it, is liable.^* 
 
 It might be noted here that all the provisions of this 
 Act so far as they relate to criminal offenses should be 
 read in connection with the Elkins Act.^''^ 
 
 An important thing to be remembered in connection 
 with Section 1 is the fact that the Act invalidates all con- 
 tracts for free transportation made prior to its date. 
 
 Very often in consideration of a right of way or of a 
 release for personal injuries, a railroad would agree to 
 give free transportation for life to some particular per- 
 son. Such contracts were invalidated by the Act.^^ 
 
 Commodities clause. — ^Paragraph 5 of Section 1 is 
 what is known as the commodities clause. This prohibits 
 any railroad to transport in interstate or foreign com- 
 merce any article or commodity other than timber and 
 the manufactured products thereof, manufactured, mined, 
 or produced by it or under its authority, or which it may 
 own in whole or in part, or in which it may have any 
 interest, direct or indirect, except such articles or com- 
 modities as may be necessary and intended for its use 
 in the conduct of its business as a common carrier. This 
 paragraph has been held constitutional. It is not void 
 because of the exception contained therein as to timber. 
 It does not deprive railroads of property without due 
 process of law, does not discriminate between carriers, is 
 not void because of the nature and character of the penal- 
 ties it imposes, but is inherently within the power of 
 Congress to enact as a regulation of commerce.^^ 
 
 This clause was passed principally to attack the great 
 coal-carrying and coal-owning roads of Pennsylvania, 
 
 "U. S. V. Williams, 159 Fed. 310. 
 "This Act is reproduced at the end of this treatise. 
 »L. & N. R. K. Co. V. Mottley, 219 U. S. 467. 
 "U. S. V. D. & H. Co., 213 U. S. 366. 
 
SECTION 1 33 
 
 sucli as the Beading, Lehigh Valley, Pennsylvania, and 
 Lackawanna & Western. It has been estimated, for in- 
 stance, that the Beading owns 57 per cent of all the an- 
 thracite coal mines of the country. A great deal of dis- 
 crimination had been practiced by these railroads against 
 individual operators, and in favor of their own mines. 
 It was thought that this law would compel the railroads 
 to sell their mines. The practical effect, however, has 
 been to make the coal-carrying roads organize coal com- 
 panies and transfer the coal mines to the coal companies. 
 The stock of the coal companies was then distributed as 
 a dividend among the stockholders in the railroad com- 
 pany. However, as the stockholders in the railroad are 
 also the stockholders in the coal company, it is very ob- 
 vious that the commodities clause cannot have accom- 
 plished very much, especially since the Supreme Court of 
 the United States held that the prohibition in the com- 
 modities clause does not apply to commodities owned by 
 separate corporations in which the carrier owns stock.^" 
 Switching connections. — This section also provides 
 that any common carrier, upon application of any lateral 
 branch line of railroad, or of any shipper tendering inter- 
 state traffic for transportation, shall construct, maintain, 
 and operate upon reasonable terms a switch connection 
 with its railroad where such connection is reasonably 
 practical and can be put in with safety and furnish suffi- 
 cient business to justify its construction and mainte- 
 nance; and the carrier shall furnish cars for the move- 
 ment of such traffic and without discrimination in favor 
 of or against any such shipper. If the railroad refuses 
 to install such connection, the applicant can then notify 
 the Commission as provided in Section 13 and the Com- 
 mission is then empowered to investigate the situation 
 and order the switch to be put in at reasonable cost. 
 
 "U. S. V. D. & H. Co., 213 U. S. 366. 
 
34 THE ACT TO REGULATE COMMERCE 
 
 It should be noted that this paragraph does not give 
 the Commission authority to order a side track to be built. 
 It only refers to the switching connection. Thus, where 
 a shipper had made an agreement that it would grade 
 and prepare a roadbed upon which a railroad company 
 agreed to construct a side track connected with its main 
 line and operate the same, and then refused to carry out 
 the agreement, it was held upon application to the Com- 
 mission that it had no jurisdiction to enforce the specific 
 provisions of an agreement of this nature, and that it was 
 a condition precedent to the exercise of its power that 
 such a private track should be actually constructed in 
 such a manner that a physical connection is practicable 
 and safe. 
 
 It must also be noted that while formerly the applica- 
 tion to the Commission for a switch connection between 
 the main line and a branch line could only be made by a 
 shipper, and not by a carrier, the law was amended in 
 1910 to give the carrier this right. So such cases as the 
 reader may come across, denying the right to the car- 
 rier, are now obsolete.*^ 
 
 A road is a lateral branch road within the meaning of 
 this section, when it is tributary to and dependent upon 
 another for an outlet, and where it is essentially a feeder 
 contributing traf&c and capable of exchanging such traffic 
 with other roads. It is not such where it is in effect an 
 independent and competing line. Nor is this any less the 
 case because it may not compete as to a portion of the 
 territory involved. The question is to be determined 
 according to the relation which the branch line bears to 
 the railroad with which a switch connection is asked. 
 This relation is one of road to road and not of shippers 
 or territories. A road does not have the relation of 
 branch or lateral road as to some shippers in its territory 
 
 "I. C. V. D. L. & W. R. E. Co., 216 U. S. 531. 
 
SECTION 1 35 
 
 and not have it as to others. In determining whether a 
 switch connection to a small line reaching several indus- 
 tries and a trunk line should be ordered, a fair test is 
 whether such a complaint would be granted were it an 
 application for a side track to an industry. 
 
 It has been held that fifty carloads of traffic a year will 
 justify the connection.*^ Where a connection can be 
 safely and easily made, however, there is no doubt that 
 less traffic than this would justify it. It should be re- 
 called that an electric line is entitled to a switch connec- 
 tion with a steam road, as this question very often 
 arises.** 
 
 As a switch connection generally involves the opera- 
 tion of a side track, it is important to note how far the 
 railroad can go in making regulations, which it undoubt- 
 edly will do before it will agree to operate the track. 
 Generally, the railroad will refuse to operate a side track 
 unless its standard form of industrial side track agree- 
 ment is signed, one clause of which requires the industry 
 to indemnify it from liability on claims for loss and dam- 
 age by sparks of burning coal from its locomotive on the 
 spur track. Inasmuch as it is no part of the duty of the 
 railroad either at common law or under the Act to spot 
 cars at warehouses or factory or to do more than set them 
 on the spur track, not on its own right of way, if it under- 
 takes to do so there is no reason why it may not predicate 
 its undertaking upon the condition it shall not be liable to 
 the industry for fire losses. The operation of a private 
 side track by a carrier is a different matter from the oper- 
 ation by it of a connection between its line and a side 
 track. If the requisite statutory conditions are complied 
 with, the shipper may insist that the connection be made, 
 whether desired or not by the carrier, but in undertaking 
 
 "Rahway Valley E. R. Co. v. D. L. & W. R. R. Co., 14 I. C. C. 191. 
 "Cin. Col. Tract. Co. v. B. & 0. S. W. R. R. Co., 20 I. C. C. 486. 
 
36 THE ACT TO REGULATE COMMERCE 
 
 a service on a spur track off its own right of way, the car- 
 rier may attach reasonable conditions to the undertaking. 
 
 In connection with this subject, it should be borne in 
 mind that Section 6, as amended by the Panama Canal 
 Act, provides that the Interstate Commerce Commission 
 may order physical connections between rail lines and 
 the docks of water carriers where the Commission finds 
 that such connections are practical. 
 
 The connecting-up of rail lines with tracks already ex- 
 isting on boat-line docks will often mean a very material 
 saving in time and expense of handling freight. 
 
SECTION 2 
 
 Crimes. — This section provides that if any carrier sub- 
 ject to the Act shall, either directly or indirectly, by any 
 special rate, rebate, drawback, or other device, charge, 
 demand, collect, or receive a greater or less compensation 
 for any service rendered, or to be rendered, in the trans- 
 portation of passengers or property subject to the Act 
 than it charges, demands, collects, or receives from any 
 other person or persons for a like and contemporaneous 
 service in the transportation of a like kind of traffic, 
 under substantially similar circumstances and conditions, 
 it shall be guilty of unjust discrimination, which is pro- 
 hibited and declared to be unlawful. 
 
 This section of the Act, so far as it relates to rebates, 
 should be read in connection with the Elkins Act, which 
 will be found explained on page 185. Practically all the 
 prosecutions brought for rebating are brought under the 
 Elkins Act, 
 
 So far as this section relates to discrimination, it should 
 be read in connection with Section 3, immediately fol- 
 lowing. 
 
 What constitutes a rebate will be found fully defined 
 in the discussion under the Elkins Act. Generally speak- 
 ing, however, anything that is equivalent to cash and by 
 means of which a transportation service is performed for 
 less than the public tariffs, constitutes a rebate, which is 
 unlawful. The shipper is presumed to know what the 
 legal rate is. The carrier is presumed to exact that rate. 
 If either the shipper fails to pay or the carrier fails to 
 collect the published rate, an offense is committed. 
 
 37 
 
38 THE ACT TO EEGULATE COMMERCE 
 
 It must be borne in mind that a rebate is not necessarily 
 a sum paid by the carrier to a shipper. It may consist of 
 favors which have the same effect. A contract between 
 a magazine publisher and a* railroad by which the latter 
 is to furnish transportation to be paid for by advertising 
 space supplied by the former is in violation of the Elkins 
 Act as amended by the Hepburn Law of June 29, 1906, in 
 that a different compensation is provided for than that 
 specified in the lawfully published tariffs.^ 
 
 Anything by which the shipper gets a reduction from 
 the published rate is a rebate. Hence, paying fictitious 
 loss, damage, or overcharge claims to the shipper is a 
 rebate; so would be the giving of free transportation to 
 which the shipper was not entitled. 
 
 This section, so far as the prohibiting of discrimination 
 is concerned, is generally construed to mean discrimina- 
 tion between commodities, while Section 3 prohibits dis- 
 crimination between localities. Thus, if it is alleged that 
 snapped corn takes a discriminatory rate as compared 
 with the rate on ordinary corn, a violation of Section 2 is 
 involved. If, however, an unduly discriminatory rate is 
 alleged in favor of Smithville as against the rate given 
 Jones City, Section 3 is violated. Section 2 requires sim- 
 ilar treatment for "like kinds of traffic," while Section 3 
 covers not only traffic but localities and persons. 
 
 *U. S. V. C. I. & L. Ry. Co., 163 Fed. 114, 115. 
 
SECTION 3 
 
 1. DiSCBIMINATION 
 
 In general. — Section 3 provides tliat it is unlawful for 
 any common carrier to make or give any undue or unrea- 
 sonable preference to any particular person, company, 
 firm, corporation, or locality or any particular description 
 of traf&c, in any respect whatsoever, or to subject any 
 particular person, company, firm, corporation, or locality, 
 or any particular description of traflS.c, to any undue or 
 unreasonable prejudice or disadvantage in any respect. 
 
 The following is a typical case of discrimination under 
 Section 3. The Traffic Association of Santa Eosa, Cali- 
 fornia, attacked the basis of rates by which that city was 
 given the rates to the nearest terminal plus the locals 
 therefrom to Santa Eosa as unduly prejudicial to that 
 city and preferential to San Jose, Santa Clara, Marysville, 
 and other California points, which were being granted 
 terminal rates, although not strictly terminal rate points. 
 San Jose and Santa Clara were given terminal rates by 
 the railroads on account of the fact that the ocean car- 
 riers absorbed the wagon haul from the terminals to these 
 points. The same was true of Marysville, which was 
 located on a branch of the Sacramento Eiver well beyond 
 the head of navigation. Santa Eosa is 52 miles north of 
 San Francisco, while San Jose is 48 miles ^outh. There 
 was an available route from San Francisco to Santa Eosa 
 by boat to Petaluma, a distance of 46 miles; thence via an 
 electric line, 16 miles, to Santa Eosa. This route was in 
 effect for through traffic in connection with the Western 
 Pacific Eailroad at San Francisco. San Jose and Santa 
 
 39 
 
40 THE ACT TO REGULATE COMMERCE 
 
 Clara are from 8 to 10 miles beyond tidewater and there- 
 fore on a water haul from San Francisco, land cartage 
 was necessary. The same situation applied to Marysville, 
 at which point the water competition was not actually or 
 apparently potential. On the Northwestern Pacific Eail- 
 road Santa Eosa was on the main line, but on the South- 
 ern Pacific Eailway it was located on a branch line. 
 Santa Clara and San Jose were on the main line of the 
 Southern Pacific Eailway. 
 
 Under the rates attacked, merchants at Santa Eosa 
 were compelled either to lose from their profits 
 on goods an amount equal to the difference in 
 rates between Santa Eosa and the other points in ques- 
 tion, or to charge this difference up to the consumer by 
 adding to the sale price. It was held that Santa Eosa 
 bore such a competitive relation to the other cities men- 
 tioned as to be unduly discriminated against by the rates 
 attacked, and while the Commission did not approve of 
 the extension of these terminal rates to San Jose, Santa 
 Clara, and Marysville, so long as the extension was made, 
 defendants must accord terminal rates to Santa Eosa.^ 
 
 It also provides that common carriers shall afford rea- 
 sonable, proper, and equal facilities for the interchanging 
 of traffic between their respective lines and for the re- 
 ceiving, forwarding, and delivering of passengers and 
 property to and from their several lines and those con- 
 necting therewith; and that they shall not discriminate 
 in their rates and charges between such connecting lines. 
 But the carrier is not required to. give the use of its 
 tracks or terminal facilities to any carrier engaged in 
 like business. 
 
 Perhaps more litigation has arisen under this section 
 than under any other of the Act. When it is considered 
 that innumerable instrumentalities and facilities are used 
 
 'Santa Eosa Traf. Ass'n v. S. P. Co., 24 I. C. C. 46. 
 
SECTION 3 41 
 
 in transportation and that it is possible to favor one 
 shipper at the expense of another, the questions that 
 have come up are almost infinite. Absorption of charges, 
 advances in rates, allowances, blanket rates, car supply, 
 classification, demurrage, differentials, export rates, ex- 
 press rates, facilities of various kinds, import traffic, 
 lighterage, passenger fares, precooling,^ proportional 
 rates, reconsignment, switching, tap lines, terminal facil- 
 ities, through routes, track storage, and weighing are but 
 few of the many different situations in which discrimina- 
 tion has been practiced. 
 
 It must be remembered that it is not every discrimina- 
 tion that is forbidden. It is only such as are undue or 
 unjust. Thus, the mere fact that one point takes a lower 
 rate than another point does not show that the higher 
 rate is discriminatory. Before it can be said that a dis- 
 crimination is undue, there must always exist a similarity 
 of circumstances. Thus, supposing one city is served by 
 five or six trunk-line carriers. Another city fifty miles 
 away is only served by one railroad. Manifestly, the 
 rates to the former would be lower than to the latter 
 because competition would force such rates down to the 
 lowest possible level. The following is an example of 
 similarity of circumstances. In the application of rates 
 on coal from the Walsenburg district in Colorado to nu- 
 merous points in Nebraska, defendants provide a rate 
 of $3.50 per net ton to one group of stations and a rate 
 of $3.75 to a second group. Complainant in substance 
 asked that certain points now taking the $3.75 rate be 
 included within the $3.50 rate group and that certain 
 ones taking the $3.50 rate be divided into two new groups 
 to which shall apply rates of $3 and $3.25. A point 
 
 'A term signifying that fruit is cooled in warehouses or cars be- 
 fore transportation is begun. To a considerable extent this operation 
 does away with refrigeration of cars. 
 
42 THE ACT TO REGULATE COMMERCE 
 
 known as Minden on the main line of the Burlington 
 took the $3.50 rate, while a station known as Minden 
 "K," on a subsidiary line of the Burlington system, 
 which also passes through Minden, took the $3.75 rate, 
 although it is only a few blocks from Minden; but there 
 is no physical connection between these two lines. It was 
 held that the lack of switch connection between the lines 
 of the Burlington system at Minden and Minden "K" 
 should not be allowed to prejudice the latter station, and 
 that Minden "K" should take the same rate as Minden, 
 and under the readjustment required by this finding the 
 rate to Minden "K" should not be exceeded at the inter- 
 mediate stations of Keene, Wilcox, Eagan, Huntley, 
 Alma, Orleans, Carter, and Sacramento, Nebraska.^ 
 Typical problems of unjust discrimination have been con- 
 sidered in the Cedar Hill coal case,* the Colorado Coal 
 Traffic Association case,® and the Nebraska State Com- 
 mission case.^ 
 
 If the same carrier serving both Kansas and Detroit 
 salt fields names a lower rate to St. Louis, for substan- 
 tially the same distance from Detroit, than from Kansas, 
 it miist be prepared to justify that discrimination; but if 
 carrier A serves St. Louis from the Kansas field, while 
 carrier B serves that market from the Detroit field, then 
 carrier A is not guilty of discrimination because it de- 
 clines to meet the rate established by carrier B.'' 
 
 The making of lower rates for carload lots as against 
 less-than-carload lots is an example of discrimination 
 that is generally conceded not to be unjust, although the 
 making of such lower rates discriminates against the 
 small shipment. 
 
 'Nebr. St. By. Com. v. C. B. & Q. R. E. Co., 23 I. C. C. 121. 
 
 '16 I. C. C. 387. 
 
 "19 I. C. C. 478. 
 
 '13 I. C. C. 349. 
 
 'R. R. Com'rs of Kan. v. A. T. & S. F. Ry. Co., 22 I. C. C. 407-413. 
 
SECTION 3 43 
 
 As it is impossible to cover tlie subject of discrimina- 
 tion pertaining to each kind of rate or instrumentality, 
 nothing more is attempted here than briefly to lay down 
 the elementary principles which generally govern these 
 questions. 
 
 Control and regulation of discrimination. — The Act 
 was intended to be an effective means for redressing 
 wrongs resulting from unjust discrimination and undue 
 preference. Where persons and places suffer, the funda- 
 mental principle of the Act is one of fair play. A railroad 
 may not control the character of the industries along its 
 line by giving preferential rates as between commodities, 
 nor discriminate as between one shipper and another even 
 though by following the last procedure it can develop 
 the greatest amount of traffic for itself. However, the 
 Act does not prohibit all discrimination, but only that 
 which is undue.^ 
 
 Jurisdiction of Commission. — The primary jurisdiction 
 over unjust discrimination by carriers is with the Inter- 
 state Commerce Commission, the power of the courts 
 being that of review. The latter are confined in that re- 
 view to questions of constitutional power, and whether 
 the action of the Commission is within the scope of its 
 jurisdiction. Thus, the Commission cannot indulge in 
 speculation as to the motives which actuated carriers in 
 fixing an adjustment of freight rates as between various 
 points of origin, but can only determine upon the facts 
 and conditions whether or not the rates in question are 
 unreasonable or unjustly discriminatory. The courts 
 look upon the Commission as qualified by experience and 
 from the nature of its duties to speak as experts with re- 
 spect to the rates and practices of carriers, and ascribe to 
 its findings the weight and conclusiveness that are ordi- 
 narily attached to expert opinions. 
 
 •Herbeck-Demer Co. v. B. & 0. R. E. Co., 17 I. C. C. 88. 
 
44 THE ACT TO REGULATE COMMERCE 
 
 Shippers may resort to the Commission for the redress- 
 ing of injuries arising out of the exaction by common 
 carriers of unlawful rates. The Commission has jurisdic- 
 tion over any regulation or practice that withdraws from 
 a shipper the equal opportunity of using and taking ad- 
 vantage of the rates offered by a carrier to the public, 
 or any adjustment of rates that discriminates between 
 persons or localities similarly situated. In all inquiries 
 as to the jurisdiction of the Commission, reference should 
 be had especially to Section 15, which particularly defines 
 the Commission's power. 
 
 Determination of discrimination. — ^A railroad must 
 serve all shippers, traffic, and localities with substantial 
 equality. It must extend the same facilities and 
 service to every locality. Only a difference in trans- 
 portation conditions can justify granting one local- 
 ity an advantage over another. The fact that a given 
 town can do a comparatively small amount of business is 
 no justification for excluding it from the opportunity to 
 get what it can. Cases of alleged undue preference or 
 prejudice, however, must be adjudged upon their respec- 
 tive merits and cannot be controlled by the results of 
 other controversies supposed to be of like nature. How- 
 ever, a railroad is justified under the law in discriminat- 
 ing in favor of one city as against another if the cities are 
 so differently circumstanced that at one point transporta- 
 tion forces are brought into play which are not or cannot 
 be exercised at another point; but a carrier is not justified 
 in deliberately adopting a policy of preference towards 
 one city as against another. In order to be undue, the 
 preference must be towards one city as against another, 
 and must give an advantage created by the mere policy of 
 a carrier and not by reasons of actual difference in condi- 
 tions. Good faith, moreover, will not save a transaction 
 from condemnation if it involves unjust preference. 
 
SECTION 3 45 
 
 Where one railroad is owned by another, although oper- 
 ated entirely separately, the Commission is supposed to 
 regard the two railroads as one in determining whether 
 the rates established by them unduly discriminate be- 
 tween different sections. Evidence of a harmful result 
 in a given case need not be sought by the Commission. 
 It would be a vain attempt in many cases to undertake 
 to ascertain with reasonable certainty just what has re- 
 sulted and who has been injured by transactions of the 
 kind. The lawmakers, assuming that such practice 
 would naturally result in many instances in favoritism 
 and irreparable wrong, have enacted the law which ad- 
 judges the practice itself to be wrong and forbids it. 
 
 "Whether or not discrimination is undue is a fact to be 
 found, not a matter of law. Carriers are common serv- 
 ants of all shippers and are bound to serve them reason- 
 ably and without undue preference. It is the duty of a 
 common carrier to receive and carry upon reasonable 
 terms goods tendered in 'a suitable condition and it can- 
 not lawfully discriminate in favor of any person, product, 
 or locality. It is difficult to determine that one theory is 
 reasonable and right for one manufacturer and shipper 
 and another theory is reasonable and right for another 
 manufacturer and shipper under substantially similar 
 circumstances and conditions. Under the Interstate Com- 
 merce Act, however, diiferential and discriminative rates 
 are lawful so long as they are not unduly discrimina- 
 tory and do not operate unfairly, and the essence of the 
 Act is that whatever the rate is it shall be the same to all 
 persons similarly situated. 
 
 Wliat is an undue or unreasonable preference or charge 
 under Section 3 of the Act is a question of fact, but sub- 
 ject to the various circumstances rates ought to be rela- 
 tively equal and reasonable. A carrier has no right to 
 make rates so as to overcome the natural advantages pf 
 
46 THE ACT TO REGULATE COMMERCE 
 
 one place over another, or to build up one place or section 
 at the expense of another. 
 
 It should be noted that when general rate adjustments 
 and rates blanketed over large areas which contemplate 
 substantial justice among all shippers result in individual 
 instances of inequality, they fail in their purpose to that 
 extent. Their strict observance in such cases upon no 
 other ground than the arbitrary theory of their exist- 
 ence should yield as far as is necessary to prevent gross 
 injustice, just as other general rules are subject to excep- 
 tions. 
 
 The following is a typical case where discrimination 
 was found to exist. On shipments of coal for railway use 
 from the district near Wheeling, West Virginia, defend- 
 ant carriers extended much lower rates than when the 
 coal was to be used for other purposes. It was held that 
 such practices on the part of the carriers ought to be 
 stopped as resulting in unjust discrimination in favor of 
 producers having contracts for the sale of coal to carriers. 
 There is no warrant in the common law or the Act for the 
 theory that a carrier as a shipper over the lines of other 
 carriers may be given a preferred rate. The practice 
 cannot be upheld without removing the very corner stone 
 of the Act designed to prevent unjust discrimination and 
 practices. If carriers insist upon making or maintaining 
 such preferential rates they may confidently expect that 
 such voluntary action on their part will be accepted in 
 any further proceedings in this or any similar cases as 
 evidence of the unreasonableness of higher rates which 
 they may undertake to enforce against other shippers.® 
 
 Bates on vehicles from Chicago to a considerable part 
 of the South and Southeast were made and largely con- 
 trolled by the direct line of the Illinois Central Eailroad, 
 
 •Hitchman Coal & Coke Co. v. B. & O. E. R. Co., 16 I. C. C. 612, 
 617, 518. 
 
SECTION 3 47 
 
 the short-line carrier. Defendants elected to meet, via 
 their lines and the various Ohio Eiver and Virginia Cities 
 gateways, the rates so made from Chicago and to accord 
 somewhat similarly favorable rate adjustments to other 
 points east of Chicago. They refused to accord these 
 rates to traffic from Toledo to Ohio Eiver Crossings and 
 to Virginia Cities destined beyond these basing points to 
 the South and Southeast. It was held that carriers may 
 not select certain points of production on their lines, giv- 
 ing them the benefit of rates that permit meeting the 
 competition of producers located upon other lines, and 
 denying such advantageous rates to other producing 
 points upon their lines that are similarly situated, and 
 as to which the same long-established basis of rates ap- 
 plies, and that the practice indulged in resulted in unjust 
 discrimination.^" 
 
 The following is a case where discrimination was 
 found not to exist. Point Pleasant, New Jersey, is 
 two and one-half miles south of Seagirt, NeF Jer- 
 sey. Manasquan lies between Seagirt and Point Pleasant. 
 Bay Head lies one mile south of Point Pleasant. The 
 Pennsylvania Eailroad, approaching from the south, 
 reaches all these towns. On coal from Pennsylvania 
 mines it charged $2.05 to Bay Head and Point Pleasant, 
 and only $1.90 to Manasquan and Seagirt. The lower 
 rate to Seagirt and Manasquan was compelled by the 
 competition of the Central Eailroad of New Jersey, which 
 was the short-line route reaching Seagirt and Manasquan, 
 but which did not reach Point Pleasant. To lower the 
 Point Pleasant rate would have the effect of disturbing 
 the rate to points in the South "grouped by the Pennsyl- 
 vania Eailroad with Point Pleasant. No evidence was 
 offered of the unreasonableness per se of the Point Pleas- 
 
 "■Milburn Wagon Co. v. L. S. & M. S. Ey. Co., 22 I. C. C. 93, 100, 
 101. 
 
48 THE ACT TO REGULATE COMMERCE 
 
 ant rate. It was lield that such rate was not unduly 
 discriminatory against coal dealers at Point Pleasant.^^ 
 
 Justification of discrimination: Carrier as shipper or 
 consignee. — Many reasons have been urged to justify dis- 
 crimination. Eailroads are necessarily large purchasers 
 of commodities such as coal, steel, oil, and the like. Fre- 
 quently, lower rates are charged for these commodities 
 when for railroad use than when they are sold for other 
 purposes. 
 
 It is now well settled that a carrier as a shipper over 
 the lines of another carrier may not have any preference 
 in the application of transportation rates and charges. 
 Conversely, it may have the same privileges under the 
 tariffs as any other shipper. 
 
 Same subject: Carrier not serving prejudiced point. 
 — ^Very often carriers are charged with discriminating 
 against some city to which their rails do not actually 
 extend. It was originally thought that a carrier could 
 not be guilty of discrimination against a locality to which 
 its line of road did not physically extend. The rule has 
 now been stated to be that a railroad cannot be said to 
 discriminate against a town it does not reach and in 
 whose trade it does not participate. If, however, a car- 
 rier is a link in a through route that does participate in 
 the trade of a locality it may be charged with being guilty 
 of discrimination. The fact that its rails do not actually 
 extend to the shipping center discriminated against can- 
 not relieve it from responsibility for the effect of rates 
 creating such discrimination which it controls and in 
 which it participates. However, a line not serving a 
 particular point cannot be said to discriminate against it 
 in any rate adjustment created by circumstances beyond 
 its control, though as a connecting line it may participate 
 in the rates imposed. 
 
 "Ocean Co. Coal Co. v. Central B. R. of N. J., 17 I. C. C. 383, 384. 
 
SECTION 3 49 
 
 Neither can it be said to discriminate against a point 
 served by it because other carriers have lower rates to 
 the same place from points on their own lines. 
 
 The following case is illustrative. The rates on pe- 
 troleum from Coffeyville, Kan., to Memphis, Tenn., are 
 higher than those from Whiting, Ind., and from Illinois 
 points to Memphis, but there is no unjust discrimination 
 against Coffeyville because the carriers serving Coffey- 
 ville are not those serving Whiting and the Illinois 
 points.^'' 
 
 Same subject: Competition in general. — ^Perhaps the 
 excuse urged more frequently than any other to justify 
 discrimination is that greater competition may exist at 
 one point than another. In considering a question of 
 discrimination, competition is an important element to be 
 taken into account. Competition as a controlling force 
 cannot be ignored by the Commission in determining 
 whether a change in rate at the competitive point is 
 undue or is one not chargeable to the carriers because 
 involuntarily made. Competition which compels lower 
 rates to one city than to another city similarly situated 
 may justify such rate adjustment; but the mere fact of 
 competition, regardless of its character, does not relieve 
 carriers from the limitations of Section 3.^^ 
 
 While competition at a given point may render the 
 circumstances substantially dissimilar and justify a dis- 
 crimination against points where such competition is not 
 controlling, such dissimilarity of circumstances does not 
 relieve the carrier altogether from the restraint of Sec- 
 tion 3, and the amount of discrimination must not be 
 greater than the dissimilarity of circumstances demands. 
 Moreover, the carrier cannot be permitted to compete at 
 
 "Natl Petroleum Ass'n v. M. P. Ry. Co., 18 I. C. C. 593, 594. 
 "Chamber of Commerce of Newport News v. S. By. Co., 23 I. C. C. 
 345, 853. 
 
50 THE ACT TO REGULATE COMMERCE 
 
 one point and decline to compete at another where all 
 conditions are the same. 
 
 There are various kinds of competition, which may be 
 stated as artificial, potential, rail, and water. 
 
 Same subject: Potential competition. — ^Potential com- 
 petition is the possibility of actually developing competi- 
 tion. Thus, the possibility of actual competition develop- 
 ing on a river, for instance, justifies a slight difference 
 in rates between a river point and one not so situated. 
 For instance, the competitive influence of the Erie Canal 
 has to a considerable extent disappeared, but it still pro- 
 duces profound effect upon grain rates from Chicago to 
 the Atlantic seaboard.^* 
 
 Same subject: Railroad competition. — ^Railroad com- 
 petition is that which exists through the fact of more 
 than one railroad serving the same point. Where such a 
 situation exists it is obvious that the railroad giving the 
 lowest rate will get the business. Moreover, it may well 
 happen that one road will have a shorter line to a certain 
 destination than another. It will, therefore, cost that 
 carrier less for transportation and at the same time af- 
 ford to the shipper more expeditious service. In order to 
 obtain any sort of business, the carrier with the more 
 circuitous route must meet whatever rate the short-line 
 carrier sees fit to publish, or else retire from the business 
 altogether. 
 
 The Commission cannot compel any carrier to meet 
 competition. Thus, if the long-line carrier does not see 
 fit to meet the rate established by its competitor it cannot 
 be compelled to do so.' It cannot, however, compete at 
 one point and refuse to compete at another similarly sit- 
 uated. The greater the number of carriers serving a 
 shipping center the more intense the competition. Such 
 
 Board of Trade of Chicago v. A. C. R. R. Co., 20 I. C. C. 504, 507. 
 
SECTION 3 51 
 
 competition is a complete justification for lower rates for 
 such a locality than to one not so situated. 
 
 Thus, most of the great systems in Official Classifica- 
 tion Territory have existed in substantially their present 
 form for the past twenty-five years. Originally, there 
 was the most active competition in the rate of transporta- 
 tion by rail, and the tariffs in Official Classification Terri- 
 tory are largely the product of that competition. There 
 is a strong presumption that rates so arrived at are rea- 
 sonable rates.^" 
 
 Same subject: Water competition. — ^Among the rea- 
 sons frequently urged as an excuse for discrimination is 
 that water competition may exist at the favored point. 
 Water competition at a given point may render circum- 
 stances and conditions dissimilar and justify discrimi- 
 nation against points where such competition is not con- 
 trolling. Carriers may, for the purpose of meeting water 
 competition, make rates lower than would otherwise be 
 justifiable, even to the extent of charging a less rate to 
 the more distant point. 
 
 The carrier may determine for itself whether it will or 
 will not meet such water competition. "While, however, 
 it may in the first instance settle its policy in this respect, 
 it must act under certain limitations. It cannot be per- 
 mitted to compete at one point and decline to compete at 
 another where the conditions are the same, nor should it 
 be allowed to compete one day and decline to compete the 
 next. 
 
 The public has the right to require equal and uniform 
 treatment within the bounds of reason. Cases might arise 
 where the Commission would require the continuance of 
 a rate established to meet such competition.^^ Under the 
 
 "Advances in Rates — Eastern Case, 2 I. C. C. 243, 259. 
 "Darling & Co. v. B. & O. E. R. Co., 15 I. C. 0. 2S6, 237. 
 
52 THE ACT TO REGULATE COMMERCE 
 
 law as it exists at present, it is difficult for carriers to 
 raise rates once lowered by water competition. 
 
 It must be borne in mind that every city is entitled to 
 the advantage of its location and may not lawfully be 
 subjected to higher freight rates merely because carriers, 
 for reasons of convenience or otherwise, include it with a 
 number of other points in surrounding territory, which 
 latter points are not similarly situated. On the other 
 hand, a community is not discriminated against because 
 owing to the disadvantage of its location it is entitled 
 only to such rates as do not allow it to compete with other 
 localities. 
 
 Furthermore, the carrier is entitled to encourage the 
 territory it serves. No undue preference results from the 
 fact that a carrier maintains lower rates from points on 
 its own line than other carriers maintain on the same 
 traffic from points near by on their lines. Within certain 
 limitations a railroad may protect its territory and 
 within those limits the Interstate Commerce Commission 
 may consider rates and their effect upon the amount of 
 traffic. In carrying out this purpose the carrier may 
 often adjust its rates to meet so-called market competi- 
 tion. However, market competition is merely a euphe- 
 mism for railroad policy. The desire of a number of 
 shippers to reach a market is a force to which the carrier 
 may not yield unless it can establish clearly that the 
 adoption of such a policy will not discriminate against 
 one community in favor of another, and will not produce 
 those results which the law was intended to prevent. 
 Neither can a carrier, in order to build up and foster 
 industries on its own line, lawfully refuse to carry the 
 products of like industries located on connecting lines. 
 
 It is the equality guaranteed by the Act that the carrier 
 must furnish. Section 3 applies to discrimination against 
 interstate traffic, and the fact that a carrier's rates on 
 
SECTION 3 53 
 
 interstate shipments are established by the Interstate 
 Commerce Commission does not relieve that carrier even 
 in the event of the duty so to adjust its rates as to inter- 
 state traffic that justice will be done between communi- 
 ties regardless of state lines. 
 
 Thus, with respect to water competition, it is fairly 
 established that the influence of water competition does 
 not cease at the Pittsburgh-Buffalo line, but extends 
 westward as to certain particular commodities. Doubt- 
 less, for some distance west of Pittsburgh the carriers 
 may properly make rates which will prevent the move- 
 ment eastward to the seaboard, instead of westward over 
 their line; but records of the Commission for twenty 
 years fail to disclose any but the most fragmentary evi- 
 dence that sea competition extends to Chicago.^'' 
 
 Removal of discrimination. — ^It is sometimes very diffi- 
 cult to remove a discriminatory situation, for the reason 
 that rates are more or less interrelated, and to reduce one 
 rate means the disturbance of others. It is, however, 
 well settled that relief against discrimination due to a 
 rate adjustment cannot be denied on the ground that 
 other points similarly situated might thereby be induced 
 to ask for relief. If unreasonableness and discrimination 
 are present, the Commission will not hesitate to reduce 
 rates because of the threat of a reduction from carriers 
 serving competing localities. 
 
 The Commission may remove discrimination either 
 through a reduction in rates to one point, or by permit- 
 ting the carrier to raise the rate to the favored point. 
 While it is proper to consider the effect of a de- 
 cision upon the general rate adjustment applying over 
 a wide scope of territory, rates which discriminate 
 against one locality cannot be justified on the ground 
 that they are part of a general scheme adopted by several 
 
 "E. B. Com; of Nev. v..S. P. Co., 21 1. C. C. 329, 355. 
 
54 THE ACT TO REGULATE COMMERCE 
 
 roads entering the same territory. In other words, un- 
 reasonable rates or undue and unjust discrimirxation 
 should be corrected, even if long-standing adjustments 
 must be disturbed. 
 
 2. Facilities 
 
 Interchange of facilities. — Section 3 provides that all 
 common carriers subject to the Act shall afford all rea- 
 sonable, proper, and equal facilities for the interchange 
 of traffic between their respective lines, and for the re- 
 ceiving, forwarding, and delivering of cars to and from 
 their several lines and those connecting therewith, and 
 shall not discriminate in their rates between such con- 
 necting lines. On the other hand, no such common car- 
 rier shall be required to give the use of its tracks or 
 terminal facilities to another carrier engaged in like 
 business. Carriers are required to make reasonable rules 
 and regulations with respect to the interchange and re- 
 turn of cars used upon through routes and for the opera- 
 tion of such through routes. Where they have failed in 
 this respect the Commission is empowered to determine 
 the individual and joint rate that is fair and reasonable. 
 
 The duty of an originating carrier to furnish equip- 
 ment for a shipment which moves on to other lines is 
 universally recognized and in cases where that is imprac- 
 ticable or deemed unwise, the carrier is asked to bear the 
 burden of the transfer from the equipment of one line to 
 that of another. The railroads are required, under the 
 Act, to serve the through routes which they have estab- 
 lished with other carriers without respect to the fact that 
 in rendering such service equipment may be carried be- 
 yond their own lines. However, a carrier generally has 
 no right to send empty cars off its line until it has fur- 
 nished sufficient cars to its own shippers. The point at 
 
SECTION a 55 
 
 wMcli traffic is to be interchanged should be determined 
 by the carriers, but the Commission will decide the mat- 
 ter in case of discrimination. 
 
 It might be noted here that state legislation, with ref- 
 erence to the duty of carriers to install interchange 
 tracks, is not prohibited where it amounts to no more 
 than a reasonable regulation of an instrumentality of in- 
 terstate commerce, and affects such commerce only sec- 
 ondarily or remotely. A carrier cannot establish a 
 through route and joint rate except with the concurrence 
 of the other carriers that form parts of such route or by 
 order of the Commission; and in the absence of agree- 
 ment no connecting carrier is obliged to furnish cars to 
 take shipments from points of origin on another carrier's 
 lines. 
 
 Terminal facilities. — ^A carrier is not required to give 
 its terminal facilities to a competitor. However, if car- 
 riers are allowing the use of their tracks or terminal 
 facilities, then the proviso of Section 3 has no application. 
 Terminals are either open or they are not, and if a car- 
 rier holds itself out as ready to permit the use of its 
 tracks at a certain charge, the fact that such charge may 
 be prohibitive does not mean that the terminals are not 
 open. On the contrary, it would seem to be a potent 
 argument for the reduction of charges for the use of 
 tracks or terminal facilities already extended. That car- 
 riers offer each to the other the use of their respective 
 tracks or terminals, is shown by the fact that freight is 
 actually interchanged after its arrival at the terminal and 
 for this service charges are provided in tariffs published 
 and filed. It follows that having elected to perform this 
 service, the carrier must make its charge reasonable. 
 
SECTION 4 
 1. Long-and-Short-Haul Eulb 
 
 In general. — This section is the famous long-and-short- 
 haul provision of the Act. It makes it unlawful for any 
 common carrier subject to the Act to charge or receive 
 greater compensation for a shorter distance than that 
 exacted for the transportation of persons or any like kind 
 of property for a longer distance over the same line or 
 route in the same direction, the shorter distance being 
 included within the longer distance, or to charge any 
 greater compensation as a through rate than the aggre- 
 gate of the intermediate rates. Upon application to the 
 Interstate Commerce Commission, however, the carrier 
 may, in special cases, after investigation, be authorized 
 by the Commission to charge less for a longer than for a 
 shorter distance for the transportation of passengers or 
 property. 
 
 The Commission may from time to time designate 
 the extent to which the common carrier may be re- 
 lieved from the operation of Section 4, provided that no 
 rates or charges lawfully existing at the time of the pas- 
 sage of that section as amended could be required to be 
 changed by reason of such section prior to the expiration 
 of six months after the passage of the amendment. Like- 
 wise, when the application to be excepted from the re- 
 quirements of Section 4 shall have been filed with the 
 Commission, the provision will not apply until a deter- 
 mination thereof has been made by the Commission. 
 
 Whenever a carrier by rail shall, in competition with 
 a water route or routes, reduce the rates on the carriage 
 
 56 
 
SECTION 4 57 
 
 of any species of freight to or from competitive points, 
 it shall not be permitted to increase such rates unless, 
 after a hearing by the Interstate Commerce Commission, 
 it shall be found that such increase rests upon changed 
 conditions other than the elimination of water competi- 
 tion. 
 
 The various intermountain cases are, perhaps, the best 
 known of all those which have arisen under Section 4. 
 Proceedings were brought by the states west of the 
 Eocky Mountains and east of the Pacific coast to obtain 
 relief from the excessively high rates which they had to 
 bear. The railroads for years had maintained lower rates 
 to the Pacific coast from points east of the Mississippi 
 Eiver than they did to the so-called intermountain points, 
 such as Eeno, Salt Lake City, Spokane, and the like. 
 The carriers contended that on account of the fact that 
 the Pacific coast was located on the ocean, so that ship- 
 ments from the East could move through the eastern 
 seaboard and around Cape Horn, they were compelled 
 to maintain lower rates to points on the Pacific coast 
 than to points in the interior. A great many cases were 
 brought by these interior points, forming a group of cases 
 known as the intermountain cases. Finally, under Sec- 
 tion 4 as amended, the seventeen carriers applied to the 
 Commission for relief from the provisions of the section. 
 The applications covered the whole territory from the 
 Atlantic seaboard to the Pacific coast and the Gulf of 
 Mexico, embracing practically the entire country. They 
 asked authority to continue all rates on the tariffs pre- 
 sented, from the Atlantic to the Pacific, lower than rates 
 concurrently in effect to intermediate points. The Com- 
 mission refused to grant their petitions, but entered an 
 order permitting in some respects a charge of a lower 
 rate for the longer haul than was asked for the shorter 
 haul, provided a proportionate relation was maintained 
 
58 THE ACT TO REGULATE COMMERCE 
 
 between them, the proportion to be upon the basis of 
 percentages which were fixed. 
 
 For the purpose of the order the Commission adopted 
 in substance a division of the entire territory into sep- 
 arate zones, which division had been resorted to by the 
 carriers for the purpose of establishing the rates in rela- 
 tion to which the petitions were filed. The carriers con- 
 tended that under Section 4 as amended by the Act of 
 June 18, 1910, the Commission was limited to ascertain- 
 ing the existence of any competition, and to authorizing 
 the carrier to meet it, without any authority to do more 
 than exercise its general powers concerning the reason- 
 ableness of rates at all points. 
 
 For the purpose of disposing of the Spokane case 
 under Section 4, the Commission has divided the United 
 States into five territorial zones.^ 
 
 From Zone 1 no higher charge can justly be made at 
 any intermediate point than to a more distant point, and 
 there is no justification for a system of rates which main- 
 tains from this territory a higher charge to any interior 
 point than is made to the coast. From Zone 2 the rates 
 to intermediate points may properly exceed by not more 
 than 7 per cent rates from the same points of origin to 
 Pacific Coast Terminals. In Zone 3 the rates from points 
 of origin to intermediate points may properly exceed 
 those to terminal points by not more than 15 per cent. 
 In Zone 4 rates from points of origin to intermediate 
 points may properly exceed those to terminal points by 
 not more than 25 per cent. In Zone 5 no opinion is ex- 
 pressed at this time, since rates from that territory are 
 not involved in these proceedings.^ 
 
 'The description of these zones is given in detail in "Freight Bates 
 Western Territory," Part 3. 
 
 'City of Spokane v. N. P. By. Co., 21 I. C. C. 400, 425, 426. 
 
SECTION 4 59 
 
 The carriers appealed the case to the Commerce Court 
 and the order of the Commission was enjoined. In Atchi- 
 son, Topeka & Santa Fe Eailway Co. v. U. S.,^ the court 
 held that the Commission by its orders respecting the 
 relation of rates from eastern points to Spokane, Eeno, 
 and other intermountain cities as compared with the rates 
 to Pacific Coast Terminals, established certain zones and 
 entered orders which did not establish absolute rates for 
 either the long or the short haul, or prescribe the extent, 
 in dollars and cents, that the short-haul rate might exceed 
 the present or some definitely fixed long-haul rate; but 
 that it established a relation between any long-haul rate 
 that the carrier might put into effect and the short-haul 
 rate by determining that from Zone 1 the western short- 
 haul rate should not exceed the long-haul rate, and from 
 Zones 2, 3, and 4 the short-haul rates should not exceed 
 the long-haul rate by more than 7 per cent, 15 per cent, 
 and 25 per cent, respectively. For this reason, the Com- 
 mission exceeded its authority, since it has no power to 
 say that any given percentage of a known, less-than- 
 reasonable rate to the coast is necessarily a maximum 
 reasonable and non-discriminatory rate from the same 
 point of origin to an interior point. The case was then 
 appealed to the Supreme Court of the United ,States and 
 that court held that under Section 4 as amended, the Com- 
 mission is not only authorized to consider competitive 
 conditions and their relation to persons and places, but 
 also has the right to do that by which alone its power 
 could be exerted, namely, the establishment of zones and 
 percentages.* 
 
 Constitutionality of Section 4. — The Government may 
 properly determine what policy railroads shall pursue so 
 
 •191 Fed. 856. 
 
 'U. S. V. A. T. & S. F. Ey. Co., 84 Sup. Ct. 986, 994, reversing 191 
 Fed. 856, enjoining the order of the Conunission in I. C. C. 
 
60 THE ACT TO REGULATE COMMERCE 
 
 long as the guarantees of the Constitution are safe- 
 guarded. If it is injurious to the interstate commerce of 
 the country and inimical to the public welfare to permit 
 its railroad highways to be used so as to promote unduly 
 the growth and prosperity of one city as against another 
 by charging more to the nearer point, it is then the proper 
 sphere of Congress to prohibit absolutely and completely 
 the pursuance of such policy by the railroads. Therefore, 
 the long-and-short-haul provision of the Act is constitu- 
 tional. 
 
 Jurisdiction of Commission. — Congress has said to car- 
 riers of interstate commerce by rail that they must not 
 charge more for the short than for the long haul, unless 
 they can show to the satisfaction of the Commission that 
 in so doing their rates do not violate the inhibition of the 
 Act as expressed in both Sections 1 and 3. The Commis- 
 sion may prescribe the maximum difference in rates 
 which may be made against intermediate points, or may 
 fix a rate at the more distant point below which a carrier 
 must not go, or may define the territory from which a 
 higher intermediate charge may be made. However, the 
 whole situation must be considered by the Commission 
 in passing upon an application for relief from the provi- 
 sions of Section 4 and in doing so it may inquire whether 
 rates to intermediate points are reasonable. 
 
 Exceptions. — It will be noted that this section provides 
 that upon application to the Interstate Commerce Com- 
 mission the carrier may, in special cases, be authorized to 
 charge less for longer than for shorter distances. These 
 instances are known as exceptions to Section 4 and in 
 this connection the Commission has had a great deal of 
 work to do. In fact, thousands of applications have been 
 filed and it can truthfully be said that at the present time 
 the exception clause is more important than any other 
 part of Section 4. The guide to the exercise of the Com- 
 
SECTION 4 61 
 
 mission's discretion in granting exceptions is to be found 
 in tlie other sections of the Act. This fact limits the dis- 
 cretion to exempt carriers from the prohibition, and im- 
 poses upon the Commission not merely the right but also 
 the duty to grant such exemption whenever on investiga- 
 tion it shall find that no violation of any section of the 
 Act would thereby be involved. 
 
 The Commission, in granting exemptions to carriers, 
 may accomplish the result in one of the following ways : 
 (1) By fixing the geographical limit within which there 
 can be no discrimination, and permitting higher rates 
 from other territory to the extent of the competition, 
 which justifies discrimination; (2) it may fix the 
 limit of the rail rate at the more distant point with 
 reference to the rate to intermediate points, thereby 
 prescribing the zone of rate discrimination which 
 may be lawful and justified; or (3) where either of 
 these methods does not seem to be practicable, it 
 may permit the carrier to continue the rates to 
 the more distant point, and, dealing with intermemate 
 points alone, prescribe a reasonable rate which the car- 
 rier, as an outgrowth of its policies or its methods of 
 making rates, may not exceed. 
 
 In point of law, the Commission has before it, on every 
 application for an exception, the reasonableness of the 
 rates involved in the carrier's application. It was not 
 the intention of Congress to permit a carrier to discrim- 
 inate in favor of a more distant point to such an extent 
 as to effect not only an undue discrimination against the 
 nearest point, but the imposition of an excessive charge. 
 The relieving power of the Commission is not to be ex- 
 ercised arbitrarily, but it is its duty to permit a higher 
 intermediate charge whenever the resulting rates will 
 not contravene the Act in that they are unjust and unrea- 
 sonable, or unduly discriminatory. This embraces both 
 
62 THE ACT TO REGULATE COMMERCE 
 
 a preference against the intermediate point and the rate 
 which that point is required to pay. Congress intended 
 to say, by the new Section 4, that as a general rule there 
 should be no lesser charge to the more distant points, but 
 it was not willing to say that there should be no excep- 
 tions to this rule. The railroads, however, were not to 
 make these exceptions themselves. Such exceptions were 
 to be made only upon petition to the Commission, their 
 justifiableness being shown. In other words, the burden 
 rests upon the carriers to justify the petition for excep- 
 tion. 
 
 Application of Section 4 to rates. — In determining the 
 application of Section 4, a great many questions natu- 
 rally arise, and these can be touched upon only briefly. 
 Inasmuch as a higher rate for a shorter than for a longer 
 haul is unduly prejudicial to the intermediate point 
 where conditions are similar, the charge for the shorter 
 distance should never exceed that for the longer dis- 
 tance. Cost of service, for instance, is not sufficient 
 justification for a greater charge to an intermediate point. 
 Fyen if conditions should justify a higher charge to the 
 intermediate point, the intermediate rate should not ex- 
 ceed the long-distance rate plus a reasonable local charge 
 from the more remote back to the intermediate point, and 
 should often be even less.^ 
 
 Competition as justification. — There are three kinds of 
 competition generally urged by carriers as justifying ex- 
 ceptions to Section 4. These are market competition, 
 railroad competition, and water competition. 
 
 Market competition. — The condition brought about by 
 the desire of one locality to sell against another in a cer- 
 tain territory is market competition. As an excuse for 
 justifying the higher rate to an intermediate point, it has 
 
 ■Bluefield Shippers Ass'n v. N. & W. Ry. Co., 22 I. C. C. 519, 531; 
 Application of the S. P. Co., 22 I. C. C. 366, 374. 
 
SECTION 4 63 
 
 been absolutely disregarded by tbe Commission and re- 
 jected. To state it briefly, the Commission has beld that 
 the history of Section 4 makes it clear that it was born 
 out of a desire and has been actuated by the purpose to 
 restrict the effect of market competition. In other words, 
 market competition has been a railroad policy that the 
 national legislature has seen fit to veto. It can, therefore, 
 be considered as settled that the desire of a number of 
 shippers to reach a market is a force to which the carrier 
 may not yield unless it can establish clearly that the 
 adoption of such policy will not unfairly discriminate 
 against one community in favor of another, and will not 
 produce those results which the law was intended to 
 prevent. 
 
 Railroad competition. — Competition with a short line 
 serving a terminal point may justify a departure from 
 the long-and-short-haul clause by the carriers that serve 
 that point by more circuitous routes. The competition 
 of carriers is a factor to be considered upon application 
 for relief from Section 4. However, while it is permissi- 
 ble to meet competition at a more distant point, the inter- 
 mediate rate should not be prejudiced by an unreasonably 
 low rate to the more distant point. 
 
 Water competition. — Under Section 4 a carrier may, 
 through the existence of water competition, be permitted 
 to charge a lower rate at a more distant point than exists 
 at an intermediate point. Carriers may determine 
 whether they will meet water competition or not. They 
 caimot be compelled to meet such competition if they do 
 not wish to. 
 
 Where rates are fixed at certain terminal points by 
 water competition a general custom has obtained of mak- 
 ing rates to intermediate points upon the combination 
 of the competitive rates to the terminal rate plus the local 
 rate back. The reasonableness of a rate so constructed 
 
64 THE ACT TO REGULATE COMMERCE 
 
 necessarily depends largely upon the reasonableness of 
 the local rate, which is added to the terminal rate. 
 Obviously, no rate to an intermediate point constructed 
 under those conditions and on that principle can reason- 
 ably be higher than the sum of the terminal rate plus the 
 local rate back. 
 
 However, the mere fact that a terminal point is situ- 
 ated on the water is not sufficient to excuse higher rates 
 at intermediate points. The water competition must be 
 real. 
 
 It must be noted that Section 4 provides that whenever 
 a carrier in competition with a water route reduces the 
 rate to or from the competitive points, it is not permitted 
 to increase such rates unless, after hearing by the Com- 
 mission, it is found that such proposed increase rests 
 upon changed conditions other than the elimination of 
 water competition. 
 
SECTION 5 
 
 Pooling of freight.— Section 5 provides that it shall 
 be unlawful for any common carrier subject to the Act 
 to enter into any contract, agreement, or combination 
 with any other common carrier or carriers for the pool- 
 ing^ of freights of different and competing railroads, or 
 to divide between them the aggregate or net proceeds of 
 the earnings of such railroads, or any portion thereof; 
 and in case of an agreement for the pooling of freights, 
 each day of its continuance is a separate offense. 
 
 Panama Canal Act: Water carriers. — Section 5 also 
 provides that after July 1, 1914, it shall be unlawful for 
 any railroad company or other common carrier subject to 
 the Act to own, lease, operate, control, or have any inter- 
 est whatsoever (by stock ownership or otherwise, either 
 directly, indirectly, through any holding company, or by 
 stockholders or directors in common, or in any other 
 manner) in any common carrier by water operated 
 through the Panama Canal or elsewhere, with which such 
 carrier does or may compete for traffic. 
 
 Jurisdiction is conferred on the Interstate Commerce 
 Commission to determine questions of fact as to the com- 
 petition or possibility of competition, after full hearing, 
 on the application of any railroad company or other car- 
 rier. Such application may be filed for the purpose of 
 determining whether any existing service is in violation 
 of this section and pray for an order permitting the con- 
 tinuance of any vessel or vessels already in operation, 
 or for the purpose of asking an order to install new 
 
 "The dividing of business or revenues among carriers in accordance 
 
66 THE ACT TO REGULATE COMMERCE 
 
 service not in conflict with this provision. The Commis- 
 sion may, on its own motion or the application of any 
 shipper, institute proceedings to inquire into the opera- 
 tion of any vessel in use by any railroad or other carrier 
 which has not applied to the Commission and had the 
 question of competition or the possibility of competition 
 determined as herein provided. In all such cases the 
 order of the Commission is to be final. 
 
 If the Interstate Commerce Commission shall be of 
 the opinion that any such existing specified service by 
 water other than through the Panama Canal is being 
 operated in the interest of the public and is of advantage 
 to the convenience and commerce of the people, and that 
 such extension will not exclude, prevent, or reduce com- 
 petition on the route by water under consideration, it 
 may, by order, extend the time during which such service 
 by water may continue to be operated beyond July 1, 
 1914. In every case of such extension, the rates, sched- 
 ules, and practices of such water carrier shall be filed 
 with the Interstate Commerce Commission and shall be 
 subject to the Act in the same manner and to the same 
 extent as is the railroad or other common carrier con- 
 trolling such water carrier or interested in any maimer 
 in its operation. 
 
 No vessel permitted to engage in the coastwise or for- 
 eign trade of the United States is permitted to enter or 
 pass through the Canal if such ship is owned, chartered, 
 operated, or controlled by any person or company which 
 is doing business in violation of the Sherman Anti-Trust 
 Act. 
 
 In accordance with the provisions of Section 5 of the 
 Act the Interstate Commerce Commission has passed upon 
 a number of applications by rail carriers for permission 
 to continue the operation of boat-lines under their control. 
 In a considerable number of cases the Commission has 
 
SECTION 5 67 
 
 found that where the rail lines are or may be in competi- 
 tion with water lines, the interests of the public are 
 best served by allowing the operation by the rail lines to 
 continue/ but in some cases the Commission refused to 
 sanction the continuation of rail-line control. This is 
 particularly true in what is known as the "Lake Lines 
 case'" which was the application of the Pennsylvania Rail- 
 road, the Delaware, Lackawanna & Western Railroad, the 
 New York Central and Hudson River Railroad, and several 
 other railroads to continue to control their boat lines operat- 
 ing on the Great Lakes. With one exception the rail lines 
 involved disposed of their holdings in the lake boats. 
 The Lehigh Valley Railroad secured from the federal 
 court a temporary injunction forbidding the Interstate 
 Commerce Commission to enforce the requirement that 
 that road should divorce itself from its boat line. After 
 due argument before a special commerce court, the court 
 held that the Commission was within its legal rights in 
 holding as it; did and refused to make the injunction per- 
 manent. 
 
 ^Ocean S S. Co. Case, 37 I. C. C. 423; Peninsular & Occidental S. S. Co. Case, 
 37 I. C. C. 433. 
 
 'Lake Line Applications under the Panama Canal Act, 33 I. C. C. 701-716. 
 
SECTION 6 
 1. Tariffs 
 
 Jurisdiction of Commission. — Section 6^ provides that 
 every carrier subject to the Act must file with the Inter- 
 state Commerce Commission and print and keep open for 
 public inspection schedules showing all rates, fares, and 
 charges for transportation between the different points 
 on its own routes, and all different points on its own 
 routes and those on the routes of any other carrier by 
 railroad, pipe line, or waterway. When a through route 
 has been established, if no joint rate over the through 
 route has been fixed, the several carriers composing such 
 through route shall file, print, and keep open for public 
 inspection the separate charges for the through trans- 
 portation. 
 
 It is further provided that the schedules must plainly 
 state the places between which property and passengers 
 are to be carried and must state storage and icing 
 charges, and any other which the Commission may re- 
 quire. The schedules must also specify all privileges or 
 facilities granted or allowed, and any rules or regulations 
 that would affect or determine any part or the aggregate 
 of such charges or the value of the service rendered to 
 the passenger, shipper, or consignee. Such schedules 
 should be plainly printed in large type and copies for the 
 use of the public should be placed in every depot, station, 
 and office of the carrier. 
 
 One of the most important sections of the whole Act 
 is this one requiring the publishing of tariffs. Its effect 
 
 'Often referred to as the "publicity clause" of the Act. 
 
 68 
 
SECTION 6 69 
 
 was to prevent the granting of secret rates. By compel- 
 ling adherence to its provisions, every shipper knows the 
 rate that every other shipper is supposed to pay. By 
 forcing the carrier to charge the published rate, the giv- 
 ing of rebates became a thing of the past. The Supreme 
 Court of the United States has held that this part of the 
 Act is constitutional, inasmuch as Congress has the 
 constitutional power to adopt the policy of requiring the 
 sale of transportation by carriers only for cash at the 
 published rates, and to prescribe appropriate means to 
 give it effect.^ 
 
 Publication: Effect. — The Act imposes upon common 
 carriers subject to its provisions the duty of establishing 
 in the prescribed manner the rates, whether individual or 
 joint, to be charged for the transportation in interstate 
 commerce of property over their lines. The rates so 
 established are obligatory upon carrier and shipper, and 
 must be strictly observed by both until changed in the 
 mode prescribed.^ 
 
 Bates filed and published as required become effective 
 in not less than thirty days after filing, unless special per- 
 mission is given by the Commission, before any transpor- 
 tation takes place thereunder. Bates duly published as 
 required by the Act are absolutely binding upon carriers 
 and shippers alike until lawfully changed as provided in 
 the Act. This does not render ineffective the provision 
 of Section 1, namely, that the Commission can substitute 
 reasonable rates for the future, or the subsequent provi- 
 sion authorizing the Commission, upon proper showing, 
 to award damages resulting on account of collecting un- 
 reasonable or unlawful rates in the past. 
 
 Adherence to published rate. — The duty of shippers to 
 pay published rates is precisely the same as the duty of 
 
 "L. & N. E. R. V. Mottley, 219 U. S. 467. 
 •U. S. V. Miller, 223 U. S. 599. 
 
70 THE ACT TO REGULATE COMMERCE 
 
 the carriers to collect such rates. The fact that a charge 
 is grossly unjust and unreasonable affords no excuse to 
 the shipper, the carrier, or the Commission for disregard- 
 ing the application of lawfully published and established 
 tariffs. The law plainly provides for but one method of 
 getting rid of the unreasonableness or unjustness of duly 
 established rates, and that is by their condemnation upon 
 complaint and investigation. They cannot lawfully be 
 ignored without making the parties to such transactions 
 incur the penalties of the law. In no other way could dis- 
 criminations which have existed be prevented. In the 
 enforcement of the statute in this respect, the Commis- 
 sion has no discretion. 
 
 A tariff cannot be varied from even if, in a particular 
 case, it be to the interest of both the shipper and the rail- 
 way that it be done. It is absolutely beyond the power of 
 either a railroad company or a shipper to make a valid 
 contract for a less rate than the published schedules filed 
 with the Commission; and, notwithstanding a contract 
 of this kind, the measure of liability of the shipper is the 
 rate so published and filed. 
 
 Erroneous quotation by carrier. — ^A frequent cause of 
 complaint is the erroneous quoting of rates by carriers' 
 agents. Frequently, the shipper asks the railroad what 
 the rate is between certain points. The carrier's clerk, 
 either through error or an attempt to get the business, 
 will quote a rate lower than the one actually in force. 
 Under such circumstances the shipper has no redress but 
 must pay the published rate even though the railroad 
 has quoted a lower rate to him. The shipper is charge- 
 able with notice of the published rate and must pay it 
 in all instances. Under the recent amendment, however, 
 the shipper may demand a written quotation of the rate; 
 Lf the carrier quotes the wrong rate it is liable to a 
 penalty of $250. 
 
SECTION 6 71 
 
 Necessity of publication. — To prevent discrimination 
 and promote equality of treatment in charges and serv- 
 ices, the law requires not only a definite statement of the 
 amount of the rates, fares, and charges of carriers in their 
 established schedules, but an equally definite statement 
 therein of all privileges and facilities granted or allowed 
 in connection therewith,* and any rules or regulations 
 which in any way affect or determine any part or the ag- 
 gregate of the rates, fares, or charges, or the value of the 
 service rendered to the passenger, shipper, or consignee. 
 It is clear that ho schedule complies with the require- 
 ments of the law which does not definitely and fully state 
 the charges on the one hand, and the services to be ren- 
 dered therefor on the other. 
 
 Purpose of publication. — The objects of the Act are to 
 prevent favoritism and to secure equal rights to all in 
 interstate transportation and to apply one legal rate pub- 
 lished, posted, and accessible to all alike." The reader 
 should always bear in mind this most important prin- 
 ciple, and apply it as a test to all questions presented to 
 him under the Act. 
 
 Posting. — Contrary to the general impression, the 
 posting of rates is not essential to make them legally 
 operative and is required only as a means of affording 
 special facilities to the public for ascertaining the rates 
 actually in force. Publication and posting within the 
 meaning of the Act are essentially distinct. The publica- 
 tion intended by the Act consists in promulgating and 
 distributing the tariff in printed form preparatory to put- 
 ting it into effect, while the posting is a continuing act 
 enjoined upon the carrier while the tariff remains opera- 
 tive as a means of affording special facilities to the public 
 
 *Some of the more important are transit, compression, concentra- 
 tion, elevation, switching, refrigeration, reconsignment, etc. 
 'N. Y. C. & H. R. E. R. Co. v. U. S., 212 U. S, 481. 
 
72 THE ACT TO REGULATE COMMERCE 
 
 for ascertaining tlie rates in force. A tariff filed with the 
 Commission in the manner prescribed by law and on 
 statutory notice is lawfully binding upon both carriers 
 and shippers even though it is not posted at stations fully 
 thirty days prior to its effective date. 
 
 The Act provides that it is the duty of every carrier by 
 railroad to keep at all times conspicuously posted in 
 every station where freight is received for transportation 
 the name of an agent resident in the city, village, or town 
 where such station is located, to whom application may 
 be made for the information required to be furnished 
 on written request; and in case any carrier shall fail at 
 any time to have such name so posted ia any station, it 
 shall be sufficient to mail such request addressed in sub- 
 stantially the following form: "The Station Agent of 
 
 the Company at station," together 
 
 with the name of the proper post-office. The name of the 
 carrier company and of the station should be inserted in 
 the blanks. 
 
 Construction. — ^A great many questions arise as to the 
 meaning of certain tariffs. As a general rule, it may be 
 said that tariffs are to be construed according to the 
 reasonable construction of their language and not by the 
 arbitrary practice or intention of the carrier. A tariff 
 should not be ambiguous and uncertain, since it is not 
 just or fair to the shipping public to promulgate as a 
 basis for determining rates a tariff the terms of 
 which are either wholly or partly indefinite or imprac- 
 ticable of application. Shippers must necessarily be 
 more or less misled thereby, and any effort on the part of 
 the carriers to apply the tariff by a lax interpreta- 
 tion thereof must result in inextricable confusion. The 
 rate on an article of commerce should be plainly 
 and clearly stated in terms that the shipping public may 
 ^readily understand. In this connection the reader should 
 
SECTION 6 73 
 
 coiisult Tariff Circular No. 18- A, which contains the Com- 
 mission's rules on the subject.® 
 
 Through shipments. — Section 6 also provides that any 
 common carrier subject to the Act receiving freight in 
 the United States to be carried through a foreign cotmtry 
 to any place in the United States shall similarly print 
 and post for public inspection schedules showing the 
 through rates established and charged by it to all points 
 in the United States beyond the foreign country to which 
 it accepts freight for shipment. Any freight shipped 
 from the United States through a foreign country into 
 the United States the through rate on which shall not 
 have been made public, as required by the Act, shall, 
 before it is admitted into the United States from such 
 foreign country, be subject to customs duties as if it were 
 of foreign production. 
 
 The same rule as applies to rates between specified 
 points discussed heretofore also applies to rates that are 
 used as part of a through rate. Thus, state rates not on 
 file with the Commission are not a lawful factor in a 
 combination through interstate charge. Very frequently, 
 state rates are not required to be published by the state 
 law. If the carrier desires to use such rates on interstate 
 shipments it must publish and post them as required by 
 the Act. 
 
 Section 6 also provides that no change shall be made 
 in the rates, fares, and charges or joint rates, fares, and 
 charges which have been filed and published by any com- 
 mon carrier in compliance with the requirements of 
 Section 6, except after thirty days' notice to the Commis- 
 sion and to the public, published as provided. This 
 notice shall plainly state the changes proposed to be 
 made in the schedule then in force and the time when the 
 
 "This publication is incorporated in "Publication and Filing oi 
 Tariffs." 
 
74 THE 4CT TO REGULATE COMMERCE 
 
 changes will go ilito effect; the proposed changes shall be 
 shown by printing new schedules, or shall be plainly indi- 
 cated upon the schedules in force at the time and kept 
 open to public inspection; provided, the Commission may, 
 in its discretion and for good cause shown, allow changes 
 upon less than the notice specified, or modify the require- 
 ments of Section 6 in respect to publishing, posting, and 
 filing of tariffs, either in particular instances or by a gen- 
 eral order applicable to special circumstances. While the 
 Act authorizes the Commission in its discretion and for 
 good cause shown to permit changes in tariffs or fares on 
 less than statutory notice, the Commission seeks to limit 
 the exercise of this discretionary power to cases where 
 actual emergency and real merit are shown. The power 
 is not to be lightly regarded, and it will not be exercised 
 to aid a carrier in any strategic endeavor or to aid ship- 
 pers in any ordinary commercial exigency. 
 
 Since the Commission has no jurisdiction over ocean 
 carriers, the "joint rate" referred to in Section 6 of the 
 Act relating to the publishing of rates does not apply to 
 the combined rates on shipments from United States 
 inland points through seaports via ocean carriers to for- 
 eign points. To permit the making of joint rates, in the 
 strict sense, between such points, would open the way for 
 rebates and other discriminatory practices. This is due 
 to the fact that in publishing a joint rate under Section 6 
 the carriers are not compelled to publish their divisions 
 of the same, and hence, by a manipulation of divisions, 
 the ocean carriers might obtain an inequitable portion 
 thereof wherewith to "induce" traffic. On such traffic, 
 therefore, the rail carriers must publish their rates from 
 inland points to seaports. 
 
 Section 6 also provides that the names of the several 
 carriers which are parties to any joint tariff shall be 
 specified therein, and each of the parties thereto, other 
 
SECTION 6 75 
 
 than the one filing the same, shall file with the Commis- 
 sion such evidence of concurrence therein or acceptance 
 thereof as may be required or approved by the Commis- 
 sion, Where such evidence is filed it shall not be neces- 
 sary for the carriers filing the same also to file copies of 
 the tariffs in which they are named as parties. If a 
 carrier publishes a tariff showing that it can make deliv- 
 ery on the tracks of a carrier from which it has not 
 obtained concurrences, it is liable in damages for such 
 erroneous publication. A carrier has no right to publish 
 a through rate unless all the carriers over that route have 
 concurred or under an order of the Commission com- 
 pelling such publication and joint action.'' 
 
 Special contracts. — ^Every common carrier subject to 
 the Act must also file with the Commission copies of all 
 contracts, agreements, or arrangements with other com- 
 mon carriers in relation to any traffic in which it partici- 
 pates which comes under the provisions of the Act. 
 
 The Act provides that the Commission may determine 
 and prescribe the form in which the schedules to be kept 
 open to public inspection shall be prepared and ar- 
 ranged, and that it may at its discretion change the form 
 from time to time. 
 
 Section 6 also sets forth that, unless otherwise provided 
 by the Act, no carrier shall engage or participate in the 
 transportation of passengers or property, unless the 
 rates, fares, and charges upon which the same are trans- 
 ported shall have been filed and published in accordance 
 with the provisions of the Act; nor shall any carrier 
 charge, demand, collect, or receive a greater or less or 
 different compensation for such transportation of passen- 
 gers or property, or for any service in connection there- 
 with, between the points named in such tariffs than the 
 
 'The different kinds of concurrences are explained in "Publication 
 and Filing of Tariffs." 
 
76 THE ACT TO REGULATE COMMEECB 
 
 rates, fares, and charges which are specified in the tariff 
 filed and in effect at the time. Nor shall any carrier re- 
 fund or remit in any mamier or by any device any portion 
 of the rates, fares, and charges so specified, or extend to 
 any shipper or person any privileges or facilities in the 
 transportation of passengers or property, except such as 
 are specified in such tariffs. 
 
 In time of actual or threatened war, precedence shall, 
 upon the demand of the President of the United States, 
 be given, over all other traffic, to the transportation of 
 troops and material of war, and carriers shall adopt every 
 means within their control to facilitate and expedite the 
 military traffic. 
 
 The Commission may reject and refuse to file any 
 schedule tendered for filing that does not provide and 
 give lawful notice of its effective date. Any schedule so 
 rejected by the Commission is void and its use unlawful. 
 
 In case of failure or refusal on the part of any carrier, 
 receiver, or trustee to comply with the terms of any regu- 
 lation adopted and promulgated or any order made by 
 the Commission under the provisions of Section 6, such 
 carrier, receiver, or trustee shall be liable to a penalty 
 of $500 for each such offense, and $25 for each and every 
 day of the continuance of such offense, which shall accrue 
 to the United States and may be recovered in a civil 
 action brought by the United States. 
 
 If any common carrier subject to the provisions of this 
 Act, which, after written request made upon the agent of 
 such carrier, by any person or company, for a written 
 statement of the rate applicable to a described shipment, 
 shall refuse or omit to give such written statement within 
 a reasonable time, or shall misstate in writing the ap- 
 plicable rate, such carrier is liable to a penalty of $250, 
 which shall accrue to the United States and may be re- 
 covered in a civil action brought by the United States; 
 
SECTION 6 77 
 
 provided, the person or company making sucli request 
 suffers damage in consequence of such refusal or omis- 
 sion or in consequence of the misstatement of the rate, 
 either through making the shipment over a line or route 
 for which the proper rate is higher than the rate over 
 another available line or route, or through entering into 
 any sale or other contract whereunder such person or 
 company obligates himself or itself to make such ship- 
 ment of freight at his or its cost. 
 
 The Panama Canal Act has also amended Section 6 to 
 the effect that when property is transported from one 
 point in the United States to another by rail and water 
 through the Panama Canal or otherwise, the Interstate 
 Commerce Commission shall have jurisdiction over such 
 transportation and over the carriers, both by rail and by 
 water. It is also given power to establish physical con- 
 nection between the line of the rail carrier and the dock 
 of the water carrier, by directing the rail carrier to make 
 suitable connection between its line and tracks Avhich may 
 have been constructed from the docks to its right of way, 
 or by directing either or both the rail and the water car- 
 rier to construct and connect with the railroad a spur 
 track or tracks to the dock. The connection is only to 
 be made where reasonably practicable and where the 
 amount of business to be handled is sufficient to justify 
 the outlay. The Commission is given full authority to 
 determine the conditions upon which these, connecting 
 tracks shall be operated and what sum shall be paid 
 either for the construction or operation. The Commis- 
 sion is also given power to establish through routes and 
 joint rates between and over those of the rail-and-water 
 lines and to establish maximum proportional rates by rail 
 to and from the ports to which the traffic is brought or 
 from which it is taken by the water carrier. It further 
 provides that if any rail carrier enters into any arrange- 
 
78 THE ACT TO REGULATE COMMERCE 
 
 ment with any water carrier operating from a port in the 
 United States to a foreign country through the Panama 
 Canal, or otherwise, for the handling of through business 
 between interior points in the United States and such for- 
 eign country, the Interstate Commerce Commission may 
 require such railway to enter into similar arrangements 
 with any or all other steamships operating from such port 
 to the same foreign country. 
 
 Acting under the authority given in Section 6, the Inter- 
 state Commerce Commission has passed upon a number 
 of applications to have through routes and joint rates 
 established over rail and water routes. In many cases 
 the desired through routes have been established, but in 
 a few cases the Commission has held that circumstances 
 do not warrant establishment of such through routes 
 because the benefits arising therefrom would not be suffi- 
 cient to offset the disadvantages to the carriers under 
 which the proposed through routes would have to labor. 
 
SECTION 7 
 
 Continuous carriage.— Section 7 provides that it shall 
 be unlawful for any common carrier by any means to pre- 
 vent the carriage of freights from being continuous from 
 the place of shipment to the place of destination. It fur- 
 ther states that no break of bulk, stoppage, or interrup- 
 tion made by any carrier shall prevent the carriage of 
 freights from being treated as one continuous carriage 
 from the place of shipment to the place of destination, 
 unless such break, stoppage, or interruption was made in 
 good faith for some necessary purpose, and without any 
 intent to avoid or interrupt unnecessarily such continu- 
 ous carriage or to invade any of the provisions of the Act. 
 
 While the meaning of this section is probably entirely 
 clear, it may assist in understanding it to suppose that a 
 carrier might intentionally delay shipments for its own 
 purposes. This section does not, of course, undertake to 
 provide that necessary delays such as congestion of 
 traffic, breakdowns of equipment, or other causes for de- 
 lays may be considered as a violation of the Act. 
 
 79 
 
SECTION 8 
 
 Attorney's fees. — Section 8 provides that in case any 
 carrier shall do, cause to be done, or permit to be done, 
 any act, matter, or thing prohibited or declared to be 
 unlawful, or shall omit to do any act, matter, or thing 
 required to be done by the Act, such common carrier 
 shall be liable to the person or persons injured for the 
 full amount of damages sustained, together with a rea- 
 sonable counsel or attorney's fee, to be fixed by the court 
 in every case of recovery, which attorney's fee shall be 
 taxed and collected as part of the costs in the case. 
 
 It has been held that this section of the Act is constitu- 
 tional. The attorney's fee which is recoverable, however, 
 must be incurred in an action brought in a court for vio- 
 lation of the Act. It cannot be recovered in an action 
 before the Commission. 
 
 Neither can it be recovered in a court where the suit 
 brought is to recover for loss or damage to goods. This 
 is because the Act does not oblige carriers to carry safely. 
 The fact that a carrier loses or damages goods is not a 
 violation of the Act. 
 
 80 
 
SECTION 9 
 
 Actions at law. — Section 9 provides that any person 
 or persons claiming to be damaged by any carrier subject 
 to the Act either may make complaint to the Commission 
 or may bring suit in any district court of the United 
 States. They shall not, however, have the right to pursue 
 both of such remedies. One of the two methods of pro- 
 cedure must be chosen. 
 
 Same subject: Witnesses. — The section further pro- 
 vides that in any such action brought for the recovery 
 of damages, the court before which the same shall be 
 pending may compel any director, officer, receiver, 
 trustee, or agent of the corporation or company defend- 
 ant in such suit to attend, appear, and testify in such 
 case. It may also order the production of the books and 
 papers of such party to any such suit; and the claim that 
 any such testimony or evidence may tend to criminate the 
 witness shall not excuse him from testifying. Such evi- 
 dence or testimony, however, shall not be used against 
 him in any criminal proceeding. 
 
 The Commission has no authority under the Act as 
 amended to require witnesses to answer any question it 
 chooses to ask in an investigation instituted by it for 
 the purpose of discovering any facts tending to defeat 
 tUe purpose of the Act, or for the purpose of recommend- 
 ing additional legislation relating to the regulation of 
 commerce that it may conceive to be within the power 
 of Congress to enact. The purposes for which it may 
 exact evidence embrace only complaints for violations 
 of the Act. 
 
 81 
 
SECTION 10 
 
 Penalties. — Section 10 provides that any common car- 
 rier, any director or officer thereof, or any receiver, 
 trustee, lessee, agent, or person acting for or employed by 
 it, who, alone or with any confederate, shall willfully do, 
 permit, or cause to be done, anything prohibited by the 
 Act, or who shall aid therein or omit to perform any duty 
 required by the Act, or shall be guilty of any infraction 
 of the Act for which no penalty is otherwise provided, 
 shall be deemed guilty of a misdemeanor, and be subject 
 to a fine not to exceed $5,000 for each offense. If the 
 offense for which any person shall be convicted shall be 
 an unlawful discrimination in rates, fares, or charges for 
 the transportation of passengers or property, in addition 
 to the fine provided for, the offender shall be liable to 
 imprisonment in the penitentiary for a term of not ex- 
 ceeding two years, or both such fine and imprisonment, 
 in the discretion of the court. 
 
 The following are instances of criminal offenses under 
 the Act. The Union Stock Yard & Transit Company, 
 Chicago, Illinois, made a contract with Pfaelzers & Sons, 
 packers, by which it agreed to pay the latter $50,000 if 
 they would build and maintain their plant adjacent to 
 the yards of the Stock Yard Company. The only interest 
 which the Stock Yard Company had in Pfaelzers & Sons 
 was the compensation for its service in handling their 
 freight accruing to it through the Junction Eailroad 
 Company, which was owned by the same holding com- 
 pany as the Stock Yard Company. It was held that as 
 the Stock Yard Company and the Junction Eailroad 
 Company were common carriers engaged in interstate 
 
 82 
 
SECTION 10 83 
 
 commerce, tlie contract was illegal as charging less than 
 the published rates and granting rebates in violation of 
 Section 2 of the Interstate Commerce Act and Section 2 
 of the Elkins Act.^ 
 
 It further provides that whenever anyone shall, by 
 means of false billing, false classification, false weighing, 
 or false report of weight, or by any other device or 
 means, permit or secure transportation for property at 
 less than the regular rates, it will constitute a misde- 
 meanor punishable by a fine of not exceeding $5,000, or 
 imprisonment in the penitentiary for a term of not ex- 
 ceeding two years, or both. 
 
 A shipper as well as a carrier may be guilty of a crim- 
 inal offense. Thus, defendant shipper made a contract 
 with a carrier for the transportation of goods for export 
 from Kansas City to New York City at the published 
 rate. Shortly thereafter, the carrier raised its rates, and 
 subsequent to this raise the shipper transported the 
 goods to New York City at the rate contracted for. It 
 was held that the shipper was guilty, under the Elkins 
 Act, of the crime of receiving a rebate whereby property 
 was transported at less than the published rate. If the 
 shipper sees fit to make a contract covering a definite 
 period for a rate in force at the time, he must be taken 
 to have done so subject to the possible change of the 
 published rate in the manner fixed by the statute, to 
 which he must conform or suffer the penalty fixed by law. 
 (Brewer J., dissenting. )2 
 
 Anyone who shall deliver property for transportation 
 to any common carrier subject to the provisions of the 
 Act, or for whom, as consignor or consignee, any such 
 carrier shall transport property, who shall knowingly, by 
 
 'U. S. V. Union Stock Yard & Transit Co., 33 Sup. Ct. 83, 89. 
 'Armour Packing Co. v. U. S., 209 U. S. 56, 82; 28 Sup. Ct. 428; 
 ^09 U. S. 90; 28 Sup. Ct. 439; 52 L. Ed. 698. 
 
84 THE ACT TO REGULATE COMMERCE 
 
 false billing, etc., obtain transportation for less tban the 
 regular published rates applicable, shall be subject to a 
 fine of not exceeding $5,000, or imprisonment of not more 
 than two years, or both. 
 
 There are a great variety of ways in which the ship- 
 per may be liable for violations of this section. A few 
 examples will help to show how these attempts to de- 
 fraud the legal rates may be brought about. 
 
 A shipper may describe an article which is provided 
 with a first-class rate in such a way as to secure a 
 fourth-class rate, and thus save the difference between 
 the two rates. Shippers sometimes show the weight of 
 the contents of packages rather than the weight of the 
 contents plus the weight of the packages themselves. A 
 very common form of attempt to defraud the carriers is 
 by stating false weights on carloads. If a carrier de- 
 pends upon the shipper's weight, the shipper may save 
 the freight on a thousand pounds or more. 
 
 A number of prosecutions for these fraudulent prac- 
 tices have taken place within the last two years, very 
 severe penalties having been imposed in some cases. 
 
SECTION 11 
 
 The Interstate Commerce Commission.— While Section 
 11 creates a conunission to be known as the Interstate 
 Commerce Commission, composed of five Commissioners, 
 who shall be appointed by the President, by and with the 
 advice and consent of the Senate, and this section has not 
 been expressly repealed, nnder Section 24 the Commis- 
 sion is enlarged to seven members, no more than four of 
 whom can be from the same political party. 
 
 Their terms, under Section 11, were for six years, but 
 Section 24 makes their terms seven years. But any per- 
 son chosen to fill a vacancy shall be appointed only for 
 the unexpired time of the Commissioner whom he suc- 
 ceeds. Any Commissioner may be removed by the Presi- 
 dent for inefficiency, neglect of duty, or malfeasance in 
 office. 
 
 No person in the employ of or holding any official re- 
 lation to any common carrier subject to the provisions 
 of the Act, or owning stock or bonds thereof, or who is 
 in any manner pecuniarily interested therein, shall enter 
 upon the duties of or hold such office. The Commission- 
 ers must not engage in any other business, vocation, or 
 employment. No vacancy in the Commission shall im- 
 pair the right of the remaining Commissioners to exer- 
 cise all the powers of the Commission. 
 
 85 
 
SECTION 12 
 
 Powers of Commission. — Section 12 provides that the 
 Commission shall have authority to inquire into the man- 
 agement of the business of all common carriers subject 
 to the provisions of the Act, and shall keep itself in- 
 formed as to the manner and method in which the same 
 is conducted. It shall have the right to obtain from such 
 common carriers full and complete information neces- 
 sary to enable it to perform the duties and carry out the 
 objects for which it was created. 
 
 Upon the request of the Commission, it is made the 
 duty of any United States district attorney to whom the 
 Commission may apply to institute and prosecute under 
 the direction of the Attorney-General of the United 
 States all necessary proceedings for the enforcement of 
 the provisions of the Act and for the punishment of all 
 violations thereof. For the purpose of the Act the Com- 
 mission is also given the power to require, by subpoena, 
 the attendance and testimony of witnesses and the pro- 
 duction of all books, papers, tariffs, contracts, agree- 
 ments, and documents relating to any matter under in- 
 vestigation, from any place in the United States. 
 
 86 
 
SECTION 13 
 
 Parties to complaints. — Section 13 provides that any 
 person, firm, corporation, company, or association, or any 
 mercantile, agricultural, or manufacturing society, or 
 other organization, or any body politic or municipal or- 
 ganization, or any common carrier, complaining of any- 
 thing done or omitted to be done by any common carrier 
 subject to the provisions of the Act, may apply to the 
 Commission by petition, which shall briefly state the 
 facts. Thereupon, a statement of the complaint so made 
 must be forwarded by the Commission to such common 
 carrier, who shall be called upon to satisfy the complaint, 
 or to answer the same in writing, within a reasonable 
 time specified by the Commission. If such common car- 
 rier within the time specified shall make reparation for 
 the injury alleged to have been done, it shall be relieved 
 of liability to the complainant only for the particular vio- 
 lation of law thus complained of. If it does not satisfy 
 the complainant within the time specified, or there shall 
 appear to be any reasonable ground for investigating the 
 complaint, it shall be the duty of the Commission to in- 
 vestigate the matters complained of. 
 
 The Commission is also given power to investigate any 
 complaint forwarded by the railroad commission of any 
 state or territory alleging a violation of the Act, and 
 also has full authority at any time to institute an 
 inquiry, on its own motion, in any matter concern- 
 ing which a complaint is authorized to be made, 
 or concerning which any question may arise under any of 
 the provisions of the Act, or relating to the enforcement 
 of any of the provisions of the Act. The Commission has 
 
 87 
 
88 THE ACT TO REGULATE COMMERCE 
 
 tlie same powers and authority to proceed with any in- 
 quiry instituted on its own motion as though it had been 
 appealed to by complaint or petition under any of the pro- 
 visions of the Act, including the power to make and 
 enforce any order or orders or relating to the matter or 
 thing concerning which the inquiry is had, excepting or- 
 ders for the payment of money. An important provision 
 is that no complaint can at any time be dismissed because 
 of the absence of direct damage to the complainant. 
 
SECTION 14 
 
 Reports of the Commission. — Section 14 provides that 
 whenever an investigation shall be made by the Com- 
 mission^ it is its duty to make a report in writing in 
 respect thereto, which shall state its conclusions, together 
 with its order in the matter. 
 
 The reports required by this section contain all the es- 
 sential facts developed by the Commission from its in- 
 vestigation, and also its order as to how the conditions 
 investigated are to be changed if it finds that a change is 
 required. 
 
 89 
 
SECTION 15 
 
 Importance of Section 15. — This section is the dom- 
 inating and controlling expression of the real object and 
 meaning of the Act. It makes the Commission a special 
 expert body to deal with rates and principles affecting 
 rates, not a body to take the place of Congress. The 
 Commission has no jurisdiction to say what shall be done 
 as a matter of public policy except in so far as the public 
 will almost always be considered in exercising its author- 
 ity under the Act. Its duty with respect to rates is to 
 inquire whether or not they are in accordance with the 
 requirements of the Act. 
 
 The Commission, in passing upon the reasonableness 
 or unreasonableness of a rate, acts as an administrative 
 body having quasi-judiciaP functions. When it deter- 
 mines what the rate should have been and shall be in the 
 future, it exercises certain legislative functions. When it 
 computes the damages or reparation due the shipper by 
 reason of the enforcement and collection of the rate, un- 
 reasonable to the extent that it exceeds a rate that is de- 
 dared to be reasonable, there is a mere mathematical 
 determination of the damages the shipper should receive. 
 On account of the extreme importance of this section of 
 the Act, the powers conferred by it will be examined in 
 detail. 
 
 Section 15 provides that whenever, after full hearing 
 upon a complaint made as provided in Section 13 of this 
 Act, or after full hearing under an order for investigation 
 and hearing made by the Commission on its own initia- 
 
 'Partly judicial. 
 
 90 
 
SECTION 15 91 
 
 tive, it shall be of the opinion that any individual or joint 
 rates or charges charged by any common carrier subject 
 to the Act, or that any individual or joint classifications, 
 regulations, or practices whatsoever, are unreasonable, 
 unjustly discriminatory, or unduly preferential, it is em- 
 powered to determine and prescribe how the conditions 
 are to be adjusted. It is also empowered to determine 
 what individual or joint classification, regulation, or 
 practice is just, fair, and reasonable, to be thereafter fol- 
 lowed, and to make an order that the carrier or carriers 
 shall discontinue such violation to the extent to which the 
 Commission finds the same to exist. 
 
 All orders of the Commission, except orders for the 
 payment of money, shall take effect within a reasonable 
 time, not less than thirty days, and shall continue in 
 force for such period of time, not exceeding two years, 
 as shall be prescribed in the order of the Commission, 
 unless the same be suspended, modified, or set aside by 
 the Commission or by a court of competent jurisdiction. 
 
 The foregoing sections, which have been briefly sum- 
 marized, deal with the general jurisdiction of the Com- 
 mission and the procedure to be adopted in bringing 
 cases to the attention of the Commission. There is no 
 section of the Act more important than this, and the 
 reader should give it close and careful attention. We 
 will now proceed to consider it somewhat in detail. 
 
 It may be well to direct the attention of the reader to 
 the fact that in reading the decisions he will often find 
 references to the United States Commerce, circuit, and 
 district courts. These courts, of equal jurisdiction, for- 
 merly existed, but the circuit and Commerce courts are 
 now abolished, and all pending actions in them are trans- 
 ferred to the district court. 
 
92 THE ACT TO EEGULATE COMMERCE 
 
 1. Jurisdiction of Commission 
 
 In general. — ^When a subject requires legislation for 
 the regulation of future conduct, but the objects of the 
 legislation are so many and of such different natures that 
 they cannot be distinctly treated in the ordinary terms of 
 legislative classification, it is not unusual to prescribe 
 general rules, if such do not already exist, and delegate 
 the power to apply those rules to the varying circum- 
 stances which may arise. The necessity of legislation 
 in such form justifies its adoption and it is not obnoxious 
 to the Constitution as a delegation of legislative power. 
 Hence, the powers delegated to the Interstate Commerce 
 Commission may be exercised, subject to the restrictions 
 in the Act and in the Constitution. The outlook of the 
 Commission and its powers must comprehend all inter- 
 ests subject to the Act. 
 
 Primary jurisdiction. — The Interstate Commerce Com- 
 mission alone has original jurisdiction to determine 
 whether an existing rate schedule, an existing regulation 
 or practice affecting rates, or an existing regulation or 
 practice of any other kind affecting matters sought to be 
 regulated by the Act, is unjust, unreasonable, unfairly 
 discriminatory, or unduly prejudicial. Its jurisdic- 
 tion is primary in matters of unjust' discrimination, 
 undue or unreasonable prejudice or disadvantage, 
 and, generally, in all cases where the Commission may 
 order the carrier to desist from violations of the Act. 
 However, relief from excessive freight charges upiorf in- 
 terstate shipments, where the charges are made according 
 to established rates fixed and promulgated as required by 
 the Interstate Commerce Act, must be sought only 
 through the Commission.^ 
 
 'A. T. & S. F. Ky. Co. v. Superior Refining Co., 83 Kan. 732, 734; 
 112 P. 604. 
 
SECTION 15 93 
 
 A United States district court has no jurisdiction to 
 enjoin' the putting into effect of a schedule of interstate 
 rates without prior application to the Interstate Com- 
 merce Commission, because that body is vested with ex- 
 clusive jurisdiction over questions of the reasonableness 
 of interstate rates under the Interstate Commerce Act as 
 amended. Under the provisions of the Interstate Com- 
 merce Act no court has any power, in the first instance, 
 to inquire into the reasonableness of any rate that has 
 been regularly established by a railway company and 
 filed with the Interstate Commerce Commission and pub- 
 lished by posting. The question of whether or not a rate 
 is reasonable and just is one to be determined, in the first 
 instance, in a proper proceeding before the Commission. 
 
 Thus, where the legal quality of the practice com- 
 plained of is not definitely fixed by the Interstate Com- 
 merce Act, BO that an allowance, otherwise permissible, 
 is lawful or unlawful according as it is reasonable or un- 
 reasonable, an action by a shipper for damages, alleged 
 to have arisen from the granting of the allowance to 
 competitors, cannot be maintained in the courts until the 
 Commission has passed upon the reasonableness or unrea- 
 sonableness of such allowance.^ 
 
 Although the Commission may have found in other 
 cases, between other shippers and defendant carrier, that 
 it is unlawful for carriers to require billing of shipments 
 to ultimate destination in order to secure the benefit of 
 through rates and transit privileges, a shipper seeking 
 reparation for the violation of this ruling by- a carrier 
 must first apply to the Commission, as the case is not 
 one of those which under Section 9 may be brought orig- 
 inally either before the Commission or the courts.* 
 
 •Mitchell Coal & Coke Co. v. Penn. R. E. Co., 230 U. S. 247. 
 •National Pole Co. v. C. & N. W. Ry. Co., 200 Fed. 185, 188. 
 
94 THE ACT TO REGULATE COMMERCE 
 
 The design of the Act is not only to have the Commis- 
 sion pass primarily upon the questions involved in a par- 
 ticular rate or practice, but, as an administrative body, 
 to pass upon all claims arising under such rate or prac- 
 tice, to the end that it, as such body, may make in each 
 case appropriate order for reparation. The Act was in- 
 tended by Congress to afford an effective and compre- 
 hensive means for redressing wrongs resulting from 
 unjust discrimination and undue preferences by carriers. 
 
 It evinces a clear purpose to require shippers seeking 
 reparation predicated upon the unreasonableness of a 
 published rate primarily to invoke redress through the 
 Commission, which alone is vested with power to enter- 
 tain original proceedings for the alteration of such estab- 
 lished schedule, notwithstanding that Sections 9 and 22 
 of the Act seemingly give the aggrieved party the option 
 of originally bringing suit in the district court to recover 
 damages for violation of the provisions of the Act.^ 
 
 Finality of Commission's findings. — The orders of the 
 Commission are final unless (1) beyond the power that 
 it can constitutionally exercise, (2) beyond its statutory 
 power, or (3) based upon a mistake of law.® 
 
 In decisions of the Commission questions of fact may 
 be involved in the determination of questions of law, so 
 that an order, regular on its face, may be set aside (1) if 
 it appears that the rate is so low as to be confiscatory and 
 in violation of the constitutional prohibition against tak- 
 ing property without due process of law, (2) if the Com- 
 mission acts so arbitrarily and unjustly as to fix rates 
 contrary to evidence or without evidence to support its 
 decree, or (3) if the authority therein involved has been 
 
 •Amerfcan Sugar Refining Co. v. D. L. & W. Ey. Co., 200 Fed. 652, 
 654. 
 
 •I. C. C. V. U. P. R. R. Co., 222 U. S. 541, 547; 32 Sup. Ct. 108; 
 66 L. Ed. 308. 
 
SECTION 15 95 
 
 exercised in so unreasonable a manner as to cause it to be 
 within the elementary rule that the substance, and not 
 the shadow, determines the validity of the exercise of the 
 power. 
 
 Neither is it for the Commerce Court to say whether 
 the Commission has properly attached great or little 
 weight to evidence adduced upon a given point, or 
 whether the conclusion reached by the Commission upon 
 testimony as to facts alone shows a mistake as to some 
 particular fact not essential or vital to the proceeding, or 
 an inadvertency, or is not such a conclusion as the Com- 
 tnerce Court might have reached. If the particular mat- 
 ter in issue and inquired into was one of fact and a full 
 hearing was afforded and the conclusion reached is sup- 
 ported by substantial evidence, it will not be nullified by 
 the courts.'^ 
 
 While the courts will not review the Commission's con- 
 clusion, holding rates unreasonable, by passing upon the 
 credibility of witnesses or conflicts in testimony, the legal 
 effect of evidence is a question of law, and an order based 
 on no substantial evidence is contrary to law and must 
 be set aside by the courts. 
 
 Orders of the Interstate Commerce Commission find- 
 ing an allowance unreasonable or discriminatory, so far 
 as they are administrative, are conclusive, whether they 
 relate to past or present rates, and can be given general 
 and uniform operation, since all shippers who have been 
 or may be affected by the rate can take advantage of the 
 ruling and avail themselves of the reparation order. 
 They are quasi-judicial and only prima facie correct, in 
 so far as they determine the fact and amount of damage. 
 Since it involves the payment of money and the taking 
 
 'N. & W. Ry. Co. V. U. S., 195 Fed. 953, 959. 
 
96 THE ACT TO REGULATE COMMERCE 
 
 of property, the carrier is, by Section 16 of the Act, given 
 its day in court and the right to a judicial hearing.^ 
 
 In consideration of the question as to whether a single 
 or individual rate is reasonable, the Commission may, 
 among other things, consider the reports of the finances 
 of the carrier, whose rates are the subject of investiga- 
 tion, and it may inquire into such reports and the items 
 thereof, into circumstances of management, the carrier's 
 present and prospective business, operating expenses, 
 outstanding obligations, and interest charges, whether 
 the rate under examination appears to be disproportion- 
 ately or unreasonably high, and whether aU traffic ap- 
 pears to bear a proper share of expenses and profits. 
 
 In a coal rate case there was evidence before the Com- 
 mission as to the cost of transportation, operating ex- 
 penses, interest, depreciation, other rates for transport- 
 ing coal, markets, allowances, terminal expenses, the life 
 of the carrier, and other conditions. It was held that the 
 order reducing rates could not be held invalid on the 
 ground of lack of evidence.^ 
 
 Jurisdiction over procedure — ^Under Sections 12 and 
 15, as we have seen, the Conunission may make investi- 
 gations to enable the Commission to perform its duty, and 
 may inquire into the intrastate business of the carriers, 
 where such inquiry is essential, to know the true condi- 
 tion of interstate business.^** This subject will be exam- 
 ined more in detail under Section 17. 
 
 Jurisdiction over orders. — The Commission has com- 
 plete power to suspend or modify its orders.^^ 
 
 Jurisdiction over capitalization. — The Commission is 
 without control over capitalization. It caimot place lim- 
 
 "Mitchell Coal & Coke Co. v. Penn. E. R. Co., 33 Sup. Ct. 916, 921; 
 230 U. S. 247. 
 
 "L. V. R. R. Co. V. U. S., 204 Fed. 986, 993. 
 "Goodrich Transit Co. v. I. C. C, 190 Fed. 943, 965. 
 "Loftus V. Pullman Co., 19 I. C. C. 102, 104. 
 
SECTION 15 97- 
 
 itation upon the purposes for which stocks or bonds may 
 be issued, or designate what property they shall repre- 
 sent.^* 
 
 Jurisdiction over interstate rates. — The making of a 
 decision as to reasonableness of rates is peculiarly with- 
 in the province of the Commission, and its findings are 
 fortified by presumptions of truth.^^ Not only is the 
 Commission vested with a discretion in determining the 
 reasonableness of rates which cannot be disturbed, but it 
 is entitled to select the testimony which it will believe and 
 rely upon according as it addresses itself to its discrim- 
 inating judgment. It may not condemn an existing rate 
 whenever it is of the opinion that the same is unjust and 
 unreasonable merely upon the expert knowledge and ac- 
 ciunulated experience of its members, but may do so only 
 upon a fuU hearing, at which the carrier is given an op- 
 portunity to be heard, and upon investigation by the 
 Commission itself of the lawfulness of the rate in ques- 
 tion and upon substantial evidence of record before it. 
 
 The Commission, in an investigation of rates, may 
 bring to the solution of the question the accumulated ex- 
 perience and expert knowledge of its members, and it is 
 its duty to do so. Before an existing rate may be con- 
 demned, however, there must be a finding that it is unjust 
 and' unreasonable, and this finding must be based upon 
 evidence of which the carrier is apprised so that it may 
 meet the case brought against it if it so desires. The 
 courts will not interfere with the action of the Commis- 
 sion in fixing rates except upon the three grounds here- 
 inbefore named. Congress did not, in the Act 
 and its amendments, intend to vest administrative 
 authority in the courts in the matter of fixing 
 rates, but, on the contrary, committed the power to the 
 
 "Advances in Rates— Western Case, 20 I. C. C. 307, 334. 
 "I. C. C. V. C. K. I. & P. Ky., 218 U. S. 88, 110. 
 
98 THE ACT TO REGULATE COMMERCE 
 
 Commission and imposed on it the duty to ascertain 
 facts, and, in view of such facts, to determine what is rea- 
 sonable in regard to rates and charges. The fixing of the 
 rates to be charged by public-service corporations is a 
 legislative function, and when Congress, in the Act as 
 amended June 29, 1906, confers upon the Interstate Com- 
 merce Commission the power to determine what are and 
 what should be reasonable rates to be charged by the car- 
 riers of interstate commerce, its action in the premises 
 is conclusive on the courts, subject to the limitations 
 above named. 
 
 Under Section 15 of the Act, as amended by 
 the Hepburn Act of June 29, 1906, the Commis- 
 sion has authority to order a railroad so to ad- 
 just its rates as to prevent discrimination against a ship- 
 per without prescribing the new rates to be applied or 
 specifying how the charges should be equalized. Where 
 there is a very considerable mass of testimony which is 
 believed by the Commission to justify it in finding a rate 
 unreasonable, and it appears that it has based its deci- 
 sion on such testimony, the condition precedent to the 
 exercise of its power to fix reasonable rates has been met. 
 Only the clearest evidence that the Cormnission has com- 
 pletely misconceived the testimony regarding rates, or 
 willfully disregarded it, can sustain in court the charge 
 of an arbitrary or unreasonable discharge of the statu- 
 tory duties imposed upon it.^* 
 
 Jurisdiction over intrastate rates. — The Commission 
 has no authority over intrastate rates, although a local 
 state rate that is a part of a combination interstate rate 
 when applied to interstate coimnerce is within its juris- 
 diction. But it cannot order a reduction of intrastate 
 rates ; neither has it jurisdiction over a shipment moving 
 
 »A. T. & S. F. By. Co. v. U. S., 203 Fed. 56, 59. 
 
SECTION 15 99 
 
 from one point to another in the same state, although it 
 was subsequently rebilled beyond the state. 
 
 For example, where cars in a movement from Trav- 
 erse City, Michigan, to Horatio, Arkansas, are billed to 
 Memphis, Tennessee, rebilled to Wynne, Arkansas, and 
 there received by the shipper's agent and rebilled to Ho- 
 ratio, the Commission has no jurisdiction over the rate 
 from Wynne to Horatio, the movement being intra- 
 state.^^ 
 
 However, a state commission has no right to compel 
 such an adjustment of state rates as will discriminate 
 against an interstate rate fabric. In this connection, the 
 reader should refer to the discussion under Section 1. 
 page 14. 
 
 Jurisdiction over suspension of rates. — Section 15 
 also provides that whenever there shall be filed with the 
 Commission any schedule stating a new individual or 
 joint rate, fare, or charge, or any new regulation or prac- 
 tice affecting any rate, fare, or charge, it shall have au- 
 thority at once, and if it so orders, without answer or 
 other formal pleading by the interested carrier or car- 
 riers, but upon reasonable notice, to enter upon a hearing 
 concerning the propriety of the same. Pending the hear- 
 ing and decision, the Commission, upon filing with such 
 schedule and delivering to the carriers affected a state- 
 ment in writing of its reasons, may suspend the opera- 
 tion of such schedule and defer the use of such rate, fare, 
 charge, classification, regulation, or practice, but not for 
 a longer period than one hundred and twenty days be- 
 yond the time when it would otherwise go into effect, un- 
 less it cannot complete its investigation in that time. In 
 such case, six months longer may be taken. 
 
 The Commission is not empowered to suspend the op- 
 eration of a schedule after it has gone into effect. 
 
 "Wells-Higman Co. v. St. L. I. M. & S. Ry. Co., 18 I. C. C. 176, 1J6. 
 
100 THE ACT TO REGULATE COMMERCE 
 
 Jurisdiction over unpublished rates.— Where a trans- 
 portation service has been rendered for which no tariff 
 authority whatever exists, and the shipper has paid the 
 siun claimed by the carrier for that service, the Com- 
 mission has jurisdiction to determine the reasonable 
 charge for the service, and to order repayment of the 
 amount in excess thereof collected by the carrier,^® 
 
 Jurisdiction to award damages. — The Commission has 
 no jurisdiction to award damages except such as consti- 
 tute the difference between an unreasonable and a rea- 
 sonable rate, or which result through discrimination or a 
 violation of the Interstate Commerce Act in some par- 
 ticular. Depreciation of real estate values and loss of 
 tenants are damages over which the Commission has no 
 jurisdiction. The Commission has no jurisdiction to en- 
 force the specific performance of a contract relating to 
 switch connections, or to award damages for its breach. 
 The Commission has no authority to administer a rem- 
 edy in applications for relief based solely upon a con- 
 tractual relationship between the parties. 
 
 The Commission assumes no jurisdiction over such sub- 
 jects as jolting, prompt settlement of damages, and polite 
 treatment. A finding of general damages by the Com- 
 mission would be mere opinion, not enforceable by the 
 Commission or binding upon the courts, to which, in any 
 event, resort must be had. 
 
 In a typical case, a Pittsburgh commission merchant 
 charged defendant with having persistently delayed his 
 carloads of fruit at yards where they were not accessible 
 to teams and could not be imloaded, at the same time ac- 
 cording to other shippers prompt service in placing cars 
 at the unloading platform. Complainant asked damages 
 in the sum of $30,497.70 for loss entailed upon him 
 
 "Maxwell v. W. F. & N. W. Ry. Co., 20 I. C. C. 197, 198; Golden- 
 berg V. Clyde S. S. Co., 20 I. C. C. 527, 628. 
 
,SECTION 15 101 
 
 through demurrage, storage, the employment of addi- 
 tional help, and loss of trade, since the fruit reached him 
 in a heated, withered condition. It was held that the 
 Commission had no jurisdiction to award damages asked, 
 the case being one for the courts ; and that breaches of 
 duty by a carrier, such as loss of or damage to property 
 in transit and the failure to make delivery safely and 
 with reasonable dispatch, in accordance with the con- 
 tract, expressed or implied, which a carrier enters into 
 when accepting a shipment, are matters solely within the 
 jurisdiction of the courts. 
 
 The language of the Act being of doubtful interpreta- 
 tion, the Commission, which is a special tribunal of lim- 
 ited powers, ought not to take jurisdiction, but should 
 resolve the doubt in favor of the court, where claims of 
 loss and damage resulting from discrimination in use of 
 facilities ordinarily belong. The question has been taken 
 before the federal courts but the Supreme Court has not 
 passed on it. 
 
 Jurisdiction over reasonable rates. — The Commission 
 is expressly authorized to prescribe the just and reason- 
 able maximum individual or joint rate or rates to be 
 charged. In determining what is a reasonable rate as 
 (distinguished from a non-discriminatory rate, a great va- 
 riety of matters must be considered by the Commission. 
 A reasonable rate must be one which will afford to the 
 carrier a just revenue for the service performed and at 
 the same time impose no unjust burden upon the shipper. 
 
 Thus, among the elements considered by the Commis- 
 sion and the courts as being entitled to more or less 
 weight may be mentioned the following : 
 
 The bona fide investment of the carrier, the car-mile 
 or train-mile revenue produced by rates, comparison of 
 the rate attacked with that in eifect upon similar com- 
 modities, whether the rate is made under influence of 
 
102 THE ACT TO REGULATE COMMERCE 
 
 competition or not, the cost of the service by the carrier, 
 distance of the haul, equipment furnished, length of time 
 the rate has been in effect, rate in the opposite direction, 
 character of the traffic, revenue of the carrier, location 
 of the road, permanent improvements made by the car- 
 rier, whether the carrier has had a previous haul on the 
 raw material where the product shipped is a manufac- 
 tured one, the profit of the shipper, the revenue of the 
 carrier, risk of loss or damage to the shipment, size of 
 the carrier, ton-mile revenue, number of carriers par- 
 ticipating in the haul, value of the commodity, value of 
 the service, volume of traffic, voluntary or subsequent re- 
 duction of the rate, weight of the shipment, relation of 
 the rates. 
 
 It must be borne in mind that, in the opinion of the 
 author, assuming the railroad to have been constructed 
 through a territory in need of its facilities, it is entitled 
 to earn from the aggregate of all its rates, when econom- 
 ically constructed and efficiently managed, a sum equal 
 to 6 per cent upon its bona fide investment provided the 
 rates so exacted do not place an unjust burden upon the 
 public. The rights of the public are always paramount. 
 
 Jurisdiction over divisions. — ^Where more than one 
 carrier engages in a haul, the rate received is divided 
 among the participants by agreement. The amount 
 which each one receives is called its "division" of the 
 rate. These divisions are matters of agreement between 
 the carriers, and the public has no interest in them. If, 
 however, the carriers cannot agree upon divisions, the 
 Commission itself will fix them. It generally does so with 
 reference to the length of the haul over each carrier, al- 
 though sometimes a railroad may be so situated with re- 
 spect to the traffic that it can demand a larger division 
 than that to which it ordinarily would be entitled. 
 
SECTION 15 103 
 
 Carriers, moreover, cannot, because of a dispute over 
 divisions, cancel a through rate and thus cause an ad- 
 vance in charges to the shipper ; nor because of such dis- 
 pute can they refuse to establish a joint rate and through 
 route where the same is reasonably necessary. 
 
 Small carriers, commonly called tap, or industrial, 
 lines, varying in length up to 20 miles, often connect in- 
 dustries moving a large tonnage, particularly the lum- 
 ber and steel interests with the trunk lines. For their 
 service in hauling the product from the forest, lumber 
 miU, or furnace to the trunk line and saving it that haul, 
 these lines are given what are commonly called "divi- 
 sions out of the rate." The right to receive these and 
 the legality of the practice wiU be considered under the 
 heading of "Allowances," inasmuch as such divisions are 
 generally made for services other than the mere hauling 
 of the shipment. 
 
 Jurisdiction over advanced rates: In general. — Sec- 
 tion 15 provides that at any hearing involving a rate in- 
 creased after January 1, 1910, or a rate sought to be in- 
 creased after the passage of the Act, the burden of proof 
 to show that the increased rate or proposed increased 
 rate is just and reasonable shall be upon the common car- 
 rier. The Commission must give to the hearing and de- 
 cision of such questions preference over all other ques- 
 tions pending before it. and must decide the same as 
 speedily as possible. 
 
 This question of advancea rates is one of the most im- 
 portant subjects with which the Commission has to deal. 
 A railroad has many different demands upon it. It must 
 pay taxes, and this is a large item. It must constantly 
 replace equipment, which, owing to the different state 
 laws prescribing new and different appliances, is almost 
 invariably more expensive than that formerly used. 
 Bridges have to be repaired, culverts built, new tracks 
 
104 THE ACT TO REGULATE COMMERCE 
 
 laid, new ties bought, and a thousand and one other 
 things must be done. 
 
 The largest single item of expense, however, is that of 
 wages, and these are constantb- augmenting. Owing to 
 the increasing amount of these various expenses, the rail- 
 roads feel that they are from time to time entitled to 
 higher rates. 
 
 The shipper, who is also subject to increased manufac- 
 turing costs, objects to paying higher freight rates. 
 Hence, we have a constant conflict between the shipper 
 and the consumer on the one hand and the railroad on 
 the other. Formerly, when the railroad advanced its 
 rates, neither the Interstate Commerce Commission nor 
 the public had any remedy except by attacking the ad- 
 vanced rate the same as any other rate would be attacked. 
 Finally, Congress amended the Interstate Commerce Act 
 so as to provide that whenever an advanced rate was pub- 
 lished to become effective, it could be temporarily sus- 
 pended by the Commission and the carrier called upon to 
 justify the advance. The burden of proof was placed 
 upon the railroad. As we have seen, the Commission was 
 also given power to suspend the advanced rate and to 
 prevent it from becoming effective temporarily. On ac- 
 count of the importance of the subject, we will consider it 
 somewhat more in detail. 
 
 The question of the reasonableness or the justness of 
 the increase in interstate rates, is one for the Interstate 
 Commerce Commission and not for the courts. The Com- 
 mission is not concerned, however, with the motives of 
 the carriers increasing the rates, provided the charges 
 l^roposed are just and reasonable. It does not stand as 
 a supreme traffic manager for the railroads of the coxm- 
 try. Considerations of their policy is not a matter dele- 
 gated to it. 
 
SECTION 15 105 
 
 While the authority of the Commission extends only to 
 passing upon the reasonableness of the rate presented 
 for its consideration, it is not restricted to a single rate. 
 Any number of rates may be attacked in the same com- 
 plaint, and the duty of the Commission is to consider 
 the passing upon those so presented. However, when 
 there is involved the propriety of an advance affecting, 
 for instance, the entire rate fabric within Official Classi- 
 fication Territory (consisting of one half the tonnage 
 and one half the freight revenues of the whole country), 
 and where that advance is justified mninly upon the 
 ground, not of commercial conditions, but of lack of ade- 
 quate revenue, on the present rate basi^, tb ^ Commission 
 must determine the fundamental questi^.i c2 the reason- 
 ableness of the rate and the adequacy of the carrier's 
 revenues.^'' 
 
 However, it should be noted that the Commission has 
 no authority to order the advance of a rate, although it 
 may accomplish the same effect by prescribing that one 
 point should take the same rates as another. Such an 
 order can be made either by raising the rate to the 
 favored point, or by reducing it to the other. In this con- 
 nection, it must be remembered that the important ques- 
 tion in many cases is not the amount of a rate, but its 
 relation to other rates. In many cases of discrimination, 
 there is no question as to the reasonableness of the rate 
 in itself, but the complaint comes from the fact that the 
 rate does not bear the proper relation to other rates. 
 
 Same subject: Justification of increase. — ^In all cases 
 where the carrier increases an existing rate the burden 
 of justifying such increase and of showing that the in- 
 creased rate is reasonable is upon the carrier. It was at 
 first contended that the statute only obligated the carrier 
 to justify the increase in the rate, but it is now well set- 
 
 "Advances in Eates— Eastern Case, 20 I. C. C. 243, 248, 
 
106 THE ACT TO REGULATE COMMERCE 
 
 tied that tlie carrier must show the entire increased rate 
 to be reasonable. It is clear, from the language of the 
 statute as well as from its history, that the purpose of 
 Congress differed from the purpose of Parliament in that 
 Congress did not intend to prescribe that any existing 
 rates were necessarily reasonable, that is, that because 
 they were then in effect they were not subject to attack; 
 that it was the duty of the Commission to deal with the 
 increased rates and not the increase in the rate; and that 
 the Commission may continue in effect the present lower 
 rates or may reduce the existing rates.^® 
 
 It should also be noted that a group of carriers cannot 
 cast upon a single carrier the responsibility of maintain- 
 ing the burden of establishing the reasonableness of cer- 
 tain advances, and claim the benefit of whatever the case 
 made by that carrier may establish. 
 
 Same subject: Right to advance rates. — Within cer- 
 tain limits it may be the right of the Commission to con- 
 sider the question of advanced rates in Official Classifica- 
 tion Territory as one of public policy and not one of strict 
 legal right. If the true interest of the whole community 
 requires it, the railroads might perhaps be allowed fair 
 earnings with which to aid their properties in addition 
 to the payment of return to their stockholders, even 
 though there is no strict requirement of law which com- 
 mands it. The ordinary considerations of justice require 
 that money invested in railroads by invitation of the Gov- 
 ernment should be allowed a fair return. This does not 
 mean that the Commission should permit rates which will 
 guarantee all railroad investment, or which will guaran- 
 tee any railroad investment at all times; but it should 
 allow rates which will yield to this capital as large a 
 return as it could have obtained from other investments 
 of the same grade. If rates formerly in effect have be- 
 
 "Advances in Bates— Western Case, 20 I. C. C. 307, 311, 314. 
 
SEC'TiON 15 lot 
 
 come insufficient, then higher rates should be permitted. 
 Kates should be such as to render possible a high-class, 
 not an extravagant, transportation service.^® 
 
 Various reasons have been advanced to justify in- 
 creased rates. "We will note, briefly, the more common 
 ones. 
 
 Very often carriers have advanced rates which are 
 related in some way. It is now well settled that there is 
 no justification for the increase in the fact that unless the 
 rates to several communities are increased, another and 
 competing community will be entitled to lower rates than 
 it now enjoys.^*' The fact that other rates may be re- 
 duced if the increases are not permitted affords no predi- 
 cate that the prese;nt rates are unreasonably low. 
 
 Perhaps the most common excuse urged for an advance 
 in rates is that the advance will equalize related rates. 
 Eates between competing producing or consuming locali- 
 ties may be inequitably adjusted and an advance from 
 the favored locality may be advisable. It is well settled, 
 however, that merely because rates are increased so as to 
 effect a differential, or so as more equitably to equalize 
 rates between competing coal fields, it does not necessar- 
 ily follow that the rates in themselves are just or reason- 
 able. The Commission is not concerned with the increase 
 in the rates, but with the increased rate.^^ It should be 
 noted, however, that advances proposed in order to bring 
 about a proper relation of rates are justified. 
 
 Same subject: Right to earn. — As to what a railroad 
 is entitled to earn, it seems that the trend of the highest 
 judicial opinion is that the Commission should not accept 
 the cost of reproduction, the capitalization, the prices of 
 stock and bonds in the market, or yet the original invest- 
 
 "Advances in Rates— Eastern Case, 20 I. C. C. 243, 262. 
 "Texas Common Point Case, 26 I. C. C. 528, 532. 
 "'Advances on Coal to Lake Points, 22 I. C. C. 604, 612. 
 
108 THE ACT TO REGULATE COMMERCE 
 
 ment alone, as tlie test of present value for purposes of 
 rate regulation. Perhaps the nearest approximation to 
 the fair standard is that of bona fide investment — the 
 sacrifice made by the owners of the property — consider- 
 ing as part of the investment any shortage of returns that 
 there may be in the early years of enterprise. Upon the 
 valuation thus reached, talking the life history of the 
 road through a number of years, its promoters are en- 
 titled to a reasonable return. This, however, is manifestly 
 limited, for a return should not be given upon wasteful- 
 ness, mismanagement, or poor judgment; and always 
 there is present the restriction that no more than a rea- 
 sonable rate shall be charged. There are many elements 
 that enter into this problem. Perhaps it may be sug- 
 gested, as heretofore, that a road which has been econom- 
 ically constructed and is efficiently operated is entitled to 
 earn 6 per cent on the bona fide investment in the prop- 
 erty. 
 
 Same subject: Change in conditions. — One of the 
 common excuses urged for an advance in rates is the fact 
 that conditions have changed since the establishment of 
 the original rate. The reasonableness of a rate must of 
 necessity depend upon the conditions surrounding the 
 traffic at the time it moves. The length of the haul, the 
 competition to be met, the cost and the value of the serv- 
 ice, the density or volume of the tonnage, as well as the 
 general transportation conditions then existing, are all 
 factors that have a more or less definite relation to the 
 rate that may reasonably be demanded. These factors, 
 except possibly the length of the haul, the grades, and 
 other transportation conditions, are in their nature nei- 
 ther permanent nor fixed, but they necessarily change 
 with the general economic panorama. No presumption 
 of law, therefore, can arise against an advanced rate 
 simply because a lower rate previously existed. 
 
SECTION 15 109 
 
 It is well understood that in recent years there has 
 been a continuous advance in the price of most materials 
 and supplies used in constructing and operating a rail- 
 road, that there has been a constant tendency to advance 
 wages, and that all this has tended to increase the cost 
 of operation. On the other hand, there has been a steady 
 improvement in transportation eflS.ciency. Trains are 
 longer; cars are larger and more heavily loaded; grades 
 are easier; the amount hauled by a given engine is 
 greater; and the density of traffic is much larger. All 
 this tends to reduce the expense of transportation. 
 
 These two set 3 of causes work in opposite directions 
 and tend to b-' ''ce each other. It is not certain what 
 the net result has been at an/ time in the past, or what it 
 is today. It is not improbab]3 that at the outset the 
 economies of operation more than outweighed the in- 
 creased cost of labor and supplies, but that of late the 
 reverse has been true. 
 
 But an increase in the cost of labor and in the price of 
 railroad materials and supplies does not necessarily 
 imply that there has been a decrease in the net earnings 
 of the carrier during the same period. A material growth 
 in its traffic and economies resulting from an alert and 
 skillful management may readily overcome the increase 
 in the cost of labor and its materials and thus leavei 
 its net revenues unimpaired. 
 
 Everything else remaining the same, an increase in cost 
 of operation would justify an advance in rates. Other 
 things remaining the same, increase in traffic requires a 
 decrease in rates. It may, therefore, happen that the 
 increase of traffic will more than offset the increase in 
 operating expense. 
 
 Sometimes it happens that a low rate is established to 
 meet competition which has ceased to exist. In such 
 cases it is held that where former rates were forced down 
 
110 THE ACT TO REGULATE COMMERCE 
 
 by past competition, the advanced rate will be sustained 
 if it is not shown to be unreasonable per se. While a car- 
 rier may establish a lower rate to meet competitive condi- 
 tions, and the Commission takes into account such con- 
 ditions in passing upon the reasonableness of the rate 
 adjustment, it does not follow that in a particular in- 
 stance the Commission will condemn an advance of a 
 rate which was formerly maintained to meet competition 
 between different producing points.^^ 
 
 In the procedure of rate cases it is often of importance 
 to ascertain just what proof should be submitted. Very 
 frequently it happens that there are elements existing 
 which raise certain presumptions and therefore do away 
 with the necessity of proof on those particular things. 
 The most important one is the presumption that a rate 
 voluntarily in effect for many years has been remunera- 
 tive to the carrier. But this rule is subject to certain 
 well-defined limitations. 
 
 Eailways are authorized to establish in the first in- 
 stance their transportation charges and the presumption 
 of right-doing attaches to their acts in the establishment 
 of those rates. The only presumption of law against a 
 particular rate springs from the fact that the rate in ques- 
 tion is an advance over some previous rate. The burden 
 of proof is always upon the party who attacks the exist- 
 ing rate, except in the case of a rate advanced after Jan- 
 uary 1, 1910. The circumstance that the railway has for 
 a series of years maintained a lower rate or a different re- 
 lation of rates is a fact that may be introduced and con- 
 sidered like any other fact.^* 
 
 But there is no presumption of wrong arising from the 
 changing of a rate by a carrier. Undoubtedly, while 
 
 "Fla. Fruit & Vegetable Ass'n v. A. C. L. R. R. Co., 17 I. C. C. 
 652, 558. 
 "I. C. C. V. Chicago G. W. R. R. Co., 209 V, S, 108, 119. 
 
SECTION 15 111 
 
 rates are changed the carrier making the change must, 
 when properly called upon, be able to give a good reason 
 therefor. But the mere fact that a rate has been raised 
 carries with it no presumption of wrong-doing. 
 
 Ordinarily, the advance of a rate for a short period 
 followed by the restoration and maintenance of a lower 
 rate formerly in force tends to raise a presumption of fact 
 that the advanced rate was unreasonable. This rule may 
 be modified where a special rate, not compensatory, is 
 put in effect to "scalp" business on competitive traffic.^* 
 
 The circumstance that carriers established and volun- 
 tarily maintained certain rates for twenty-five years, for 
 instance, is not conclusive evidence that they were rea- 
 sonable; but it is in the nature of an admission upon their 
 part to that effect, which requires, when these rates are 
 advanced, some satisfactory explanation. When it fur- 
 ther appears that a rate voluntarily maintained for a 
 quarter of a century has within seven years been in- 
 creased by one fourth, the reason by which it is sought 
 to justify a still further advance should be even more 
 cogent. This does not conclusively show that the carriers 
 ought not to be permitted to advance such rate at the 
 present time or in the future; but it is evidence which 
 bears strongly upon the propriety of a present increase. 
 
 The long continuance of a rate voluntarily established 
 and not published under the compelling influence of com- 
 petitive conditions is in itself evidence of no little weight 
 of its reasonableness. But the long continuance of a rate 
 largely loses its value as evidence in a case involving an 
 advanced rate for the same service, when it is shown that 
 the prior and lower rate was the result of the influence 
 of a strong movement by water. 
 
 An advance in a long-established rate at once suggests 
 the propriety of an inquiry of the carrier for a statement 
 
 "Fairmont Creamery Co. v. C. B. & Q. R. E. Co., 22 I. C. C. 252, 254. 
 
112 THE ACT TO REGULATE COMMERCE 
 
 of its reasons for making the advance. But in making its 
 explanation the carrier is not under the necessity of over- 
 coming the technical weight and force of a presumption 
 of law that the previously existing lower rate was a rea- 
 sonable rate. The long continuance of a lower rate may 
 be said to raise a presumption of fact that the advanced 
 rate is unreasonable. But this in a sense is no presump- 
 tion at all, for it cannot carry beyond the actual tendency 
 of the fact itself to produce that belief in the mind of 
 the investigator. The fact that the lower rate has long 
 remained undisturbed has strong probative value. Con- 
 sidered merely as evidence, such a rate history, in the 
 absence of some explanation that satisfies the judgment 
 of the propriety and need of an increase in rates, would 
 ordinarily have a great force. But in every ease the Com- 
 mission must consider and weigh all the other facts of 
 record before arriving at the conclusion that the increase 
 in rates was unreasonable.^^ 
 
 Where carriers voluntarily maintain a rate between 
 certain points for a long period of time, the presumption 
 is that such rate is reasonable. Where a long-established 
 rate is raised for a short period and then voluntarily re- 
 duced to the former level, the presumption is that the 
 advanced rate was unreasonable; but this presumption 
 may be overcome by proof to the contrary. However, 
 where an advance is made in rates long maintained and 
 the evidence shows that the traffic affected is large, im- 
 portant, and constantly increasing, the advance will be 
 held unjust unless it is satisfactorily explained.^® 
 
 Jurisdiction over through routes and joint rates. — 
 Section 15 also provides that the Commission may, after 
 a hearing, either upon complaint or upon its own initia- 
 
 "Memphis Cotton Oa Co. v. I. C. R. R. Co., 17 I. C. C. 313, 318. 
 "Pacific Coast Lumber Mfrs. Ass'n v. N. P. Ry. Co., 14 I. C. C. 23, 
 S8. 
 
SECTION 15 113 
 
 tive, establish through routes and joint classifications. 
 Likewise, the Commission may establish joint rates as the 
 maximum to be charged. Whenever the carriers them- 
 selves shall have refused or neglected to establish volun- 
 tarily through routes, joint classifications, or joint rates, 
 it may prescribe the division of such rates, and the terms 
 and conditions under which the through routes shall be 
 operated. This provision applies when one of the con- 
 necting carriers is a water line. 
 
 The Commission may not, however, establish any 
 through route, classification, or rate between street elec- 
 tric passenger railways not engaged in the general busi- 
 ness of transporting freight in addition to their passen- 
 ger and express business, and railroads of a different 
 character; nor has it the right to establish any route, 
 classification, rate, fare, or charge when the transporta- 
 tion is wholly by water. 
 
 In establishing such through route, the Commission 
 shall not compel any company to embrace in such route 
 substantially less than the entire length of its railroad 
 plus that of any intermediate railroad operated in con- 
 junction with or under a common management or control, 
 and lying between the termini of such proposed through 
 route. But if the observance of the foregoing rule would 
 make the through route unreasonably long as compared 
 with another possible and practicable through route, the 
 Commission can force the railroad to establish the latter. 
 
 Under Section 1 the carrier is required to establish 
 through routes and joint rates; and by Section 15 the 
 Commission is given the authority to require the carrier 
 to do this when necessary. There is no more important 
 power than this conferred upon the Commission. 
 Through routes and joint rates are of the utmost im- 
 portance to the shippers. 
 
114 THE ACT TO REGULATE COMMERCE 
 
 There are really only two limitations upon this power 
 of the Commission. The most important is that the orig- 
 inating carrier is entitled to the long haul on the traffic 
 and the Commission cannot deprive it of its right to have 
 the freight carried over such part of its railroad as lies 
 directly between the termini of the proposed through 
 route, unless the carrier consents to the change, or unless 
 to do so would make such through route unreasonably 
 long as compared with another practicable through route 
 which could otherwise be established. 
 
 It should be remembered that Section 1 of the Act re- 
 lating to the establishment of through routes and reason- 
 able rates applicable thereto, should be read in connec- 
 tion with the latter portion of Section 3, and with Section 
 15. Furthermore, regard should be given to the intend- 
 ment of the Act as a whole, and the correction of the evil 
 to be remedied. Prior to 1910, the power of the Commis- 
 sion to establish through routes was limited to instances 
 in which no satisfactory through route existed. The re- 
 moval of this limitation places within the discretion of 
 the Commission the establishment of additional through 
 routes. The theory of the provision in Section 1 of the 
 Act relating to the establishment of through routes and 
 reasonable rates applicable thereto, is that carriers 
 should freely interchange freight between their respective 
 lines, to the end that interstate commerce may move with- 
 out interruption or delay. The failure of the Commission 
 to comply with its duty under Section 1 of the Act to 
 establish just and reasonable rates does not nullify its 
 compliance with the duty to establish through routes. It 
 should be noted that under Section 1 of the Act, relating 
 to the establishment of through routes and joint rates, 
 the duty of the Commission is twofold: (1) Through 
 
SECTION 15 115 
 
 routes must be established; (2) just and reasonable rates 
 must be made applicable thereto.^^ 
 
 The important thing to remember is that the Commis- 
 sion has power to order the establishment of a through 
 route and joint rate although there are in existence other 
 through routes capable of adequately and expeditiously 
 handling all traffic. We shall note briefly the general 
 principles governing the subject of through routes and 
 joint rates. 
 
 Same subject: Establishment by carrier. — ^It must be 
 remembered that a through route is a continuous line 
 formed by agreement, express or implied, between con- 
 necting carriers over which shipments are to be made and 
 that all services in connection therewith from origin to 
 destination must be performed by the carriers at their 
 lawfully established rates applicable thereto. The serv- 
 ice must be unbroken for every part of the journey over 
 the continuous line. When a through route is estab- 
 lished, the shipper should not be called upon at any point 
 therein to assume possession or control of his shipment 
 or to do any service in forwarding it to its final destina- 
 tion, such as loading and unloading in transit. But car- 
 riers may provide for unloading and transferring at 
 stated junction points as a part of the through service, 
 if their tariffs also specify the kind of service required 
 in transferring at such points and the separate rates and 
 charges to be exacted therefor.^^ 
 
 The Act imposes upon common carriers subject to its 
 provisions the duty of establishing in a prescribed mode 
 the rates, whether individual or joint, to be charged for 
 the transportation in interstate commerce of property 
 over their lines. The rates so established are obligatory 
 upon carrier and shipper and must be strictly observed by 
 
 "Flour City S. S. Co. v. L. V. R. R. Co., 24 I. C. C. 179, 184. 
 ""Memphis Freight Bur. v. F. S. & W. B. R. Co., 13 I. C. C. 1, 8. 
 
116 THE ACT TO REGULATE COMMERCE 
 
 both until changed in the required manner. The provision 
 of Section 15 that the shipper shall in all instances have 
 the right to determine over which of several competing 
 lines his freight shall be transported, is not a flexible rule 
 of law to be expanded or contracted to meet the needs of 
 carriers under varying situations which may or may not 
 be of their own creation, and the Commission has promul- 
 gated nothing in the nature of exceptions thereto or 
 exemptions therefrom. 
 
 The law requires the establishment and maintenance of 
 through routes and joint rates in order that traffic may be 
 moved, whether in greater or less volume and for long 
 or short distances, without the delays or other handicaps 
 of reshipment. It recognizes the carrier's right to its 
 own long haul; hence, it releases it from the obligation to 
 participate in a through route between any two points 
 which does not include all or substantially all of its line 
 or lines between those points, except when an unreason- 
 ably long or circuitous route would otherwise be created. 
 But it goes further; where through routes and through 
 rates have been established, the law reposes in the ship- 
 per the right to dictate how his shipments must be routed, 
 both as to terminal and to intermediate carriers. 
 
 Same subject: Right to favor own line. — Similarly, a 
 carrier has a right so to construct its tariffs as to hold the 
 business to its own line, provided in so doing any provi- 
 sion of the Act is not violated. A carrier may in its own 
 interest, if it so desires, carry for a longer distance over 
 its own line than would be necessary if carried over 
 the line of its competitors, in order to obtain 
 a portion of the competitive business upon terms 
 that will afford some profit. It does not neces- 
 sarily follow, however, that a carrier not compet- 
 ing for traffic in this way thereby subjects itself to an 
 order compelling it to do so. Thus, a trunk-line carrier 
 
SECTION 15 117 
 
 wMcli purchases a brancli-line road is justified in can- 
 celing through joint rates with another carrier when such 
 cancellation will tend to move traffic entirely over its own 
 line under reasonable and non-discriminatory rates, to 
 the exclusion of the former two-line haul. 
 
 While a producing center may be entitled to the estab- 
 lishment of a through route and joint rate via a desig- 
 nated junction, it is not unreasonable, where the product 
 is not perishable and moves at all seasons, to permit the 
 originating carrier to transport such commodity via an- 
 other junction point over a substantially longer route, in 
 order to obtain the long haul and hold the traffic to its 
 own line. But it must do so under rates which should be 
 established via the shorter designated route. Inasmuch 
 as a carrier may so construct tariffs as to hold traffic to 
 its own line, so long as the Act is not violated, or may in 
 its own interest carry for longer distance over its own 
 line than would be necessary over the line of its competi- 
 tor, as the end sought and the resulting rate in each dis- 
 tance is the same, the carrier may refrain from carrying 
 the longer distance when to do so compels it to accept a 
 less satisfactory division of the rate. 
 
 The carriers owe a duty to establish and maintain 
 through routes and joint rates so that there may be the 
 freest movement of traffic without the necessity of reship- 
 ment. In the formation of these through routes, however, 
 the law recognizes the right of the carrier to protect its 
 own long haul, and it may not be required against its own 
 will to participate in a through route between any two 
 points which does not include all, or substantially all, of 
 its line or lines between those points, except when an un- 
 reasonably long or circuitous route would otherwise be 
 established.^^ 
 
 "Chamber of Commerce of N. Y. v. N. Y. C. & H. E. E. E. Co., 24 
 I. C. C. 
 
118 THE ACT TO REGULATE COMMERCE 
 
 Same subject: What is satisfactory through route. — 
 
 "Kailroads of the country are called upon so to unite 
 themselves that they will constitute one national sys- 
 tem." They must establish through routes, keep these 
 routes open and in operation, furnish necessary facilities 
 for such transportation, and make reasonable and proper 
 rules of practice as between themselves and the shippers, 
 and as between each other. The purpose of Section 15 is 
 to afford relief to a shipping community and not to aid 
 carriers to acquire strategic advantages in their contests 
 with each other. While a railroad company is compe- 
 tent to file a complaint under the clause in question and 
 to demand an order establishing such routes and rates 
 with its connections, its right to such relief is to be tested 
 by the needs of the community that it seeks thus to serve 
 and not by the fact that stations on its line in such com- 
 munity have not been accorded such routes and rates by 
 connecting lines. 
 
 Points of production are entitled to reasonable through 
 rates applicable thereto. Whether or not a through route 
 shall be established by the Commission depends largely 
 upon whether or not a through route via a designated 
 junction point would be "unreasonably long" under the 
 terms of Section 15. 
 
 Same subject: Right to withdraw through routes. — 
 Inasmuch as the through rate is generally less than the 
 combination of local rates would be, there results an ad- 
 vance in rates to the shipper if the through rate is with- 
 drawn. Very frequently, in order to force traffic through 
 certain gateways or because of disputes with other car- 
 riers over divisions, railroads withdraw their consent to 
 certain through routes. There is then presented the sit- 
 uation of an advance in rates that the carrier must 
 justify. 
 
SECTION 15 119 
 
 It has been held that a dispute over divisions, which is 
 the most common excuse, affords no justification for the 
 withdrawal. As a matter of fact, the carrier will have a 
 very hard time justifying any such withdrawal unless 
 there is left for the shipper another equally feasible and 
 practicable through route and joint rate between the 
 termini involved. If such a route does exist, then, sub- 
 ject to the other rules we have seen governing advances 
 in rates, the carrier may be able to justify the with- 
 drawal. 
 
 Same subject: Obligation to furnish equipment. — 
 Very often disputes arise between carriers and shippers 
 as to what line in the through route is under the duty to 
 furnish cars. The obligation to furnish cars for trans- 
 portation over through routes composed of two or more 
 carriers is a joint one, and rests upon all carriers partici- 
 pating in the route. Each carrier subject to the Act is 
 charged with the duty of furnishing cars to industries 
 located upon its line. In case of through routes, the ob- 
 ligation to furnish cars for shipments to points upon lines 
 of its connections is joint with such connections. Gener- 
 ally speaking, however, in the first instance the duty of 
 furnishing cars rests upon the originating carrier. 
 
 Same subject: Legal rate. — One other important 
 thing to be remembered in the consideration of through 
 routes is that the through rate is always the legal rate. 
 It sometimes happens that between two termini a com- 
 bination of local and other rates may be lower than the 
 published through rate, and it is very common for ship- 
 pers to insist that the lower rate should apply. ' It has 
 been conclusively settled for many years, however, that 
 the only legal rate that can apply is the through rate, and 
 that shippers must pay this rate and carriers charge it, 
 or a violation of the Act will result. But the amended 
 
120 THE ACT TO REGULATE COMMERCE 
 
 fourth section makes unlawful a through rate that ex- 
 ceeds the sum of the intermediate rates. 
 
 Jurisdiction over routing and misrouting: In gen- 
 eral. — Section 15 further provides that when a carrier is 
 a party to tariffs carrying through routes and rates be- 
 tween two points the shipper between those points may 
 specify over which route the shipment shall move. It is 
 the duty of the initial carrier to route the property and 
 issue a through bill of lading therefor, as directed, and to 
 transport it over its own line or lines and deliver to a 
 connecting line or lines according to such through route. 
 It is the duty of each of all such connecting carriers to 
 receive the property and transport it over its line and 
 deliver the same to the next succeeding carrier or con- 
 signee, according to the routing instructions in the bill 
 of lading. 
 
 "We see, therefore, that Section 15 specifically gives the 
 shipper the right to designate the routing of the ship- 
 ment. There is perhaps no subject that has caused more 
 trouble in the traffic field than the routing and misrouting 
 of shipments. This subject is very important and should 
 be studied somewhat in detail. 
 
 Where a carrier routes a shipment via a route that 
 takes a higher charge than another available route, the 
 Commission holds that through the wrongful act of the 
 routing carrier the shipper has been compelled to pay a 
 charge in excess of the reasonable rate via the cheaper 
 route, and reparation will be awarded in the difference 
 between said rates against the offending carrier. 
 
 Same subject: Carriers' duty to transport.— By far 
 the greater number of controversies concerning routing 
 arise in cases where the shipper did not designate it. It 
 is, therefore, important to note what the obligations of 
 the carrier are as to routing in the absence of shipper's 
 instructions. 
 
SECTION 15 121 
 
 Same subject: Accustomed or natural route. — ^Very 
 often traffic moves naturally over a certain route. This 
 is sometimes because the originating carrier itself has 
 not the equipment and so must obtain it from a con- 
 necting carrier, which naturally insists that the traffic 
 should move over its line. There may also be other rea- 
 sons. 
 
 If a foreign car is available, which under rules as to 
 car service must be sent via a particular line or route, 
 over which a higher rate obtains, the agent must explain 
 that fact to the shipper and allow him to elect whether 
 he will use that car at the higher rate or wait for an- 
 other car. If the shipper elects to use the car at the 
 higher rate, the agent should so note on the bill of lad- 
 ing. When this rule is not complied with, the carrier is 
 liable for misrouting. However, whatever weight may 
 attach to what carriers may in their own best interest 
 regard as "natural routes," it cannot overbalance the 
 right of consignors to ship at reasonable and just rates 
 over the lines of such carriers. 
 
 Same subject: Cheapest available route. — The rule, 
 however, is best stated to be that in the absence of ship- 
 ping instructions it is the duty of the originating carrier 
 to ship via the cheapest available route. 
 
 Same subject: Conflict in billing between rate and 
 route. — ^Very often shippers, in making out bills of lad- 
 ing, designate a certain route and a certain rate, but the 
 rate stated does not apply via the route indicated. Where 
 the shipper's bill of lading contains instructions both as 
 to route and rate, and the rate is not applicable over any 
 route of the receiving carrier, but is applicable over the 
 route of a rival carrier to which the shipments might 
 have been delivered, the receiving carrier may forward 
 the shipment over its own line at the lowest rate law- 
 
122 THE ACT TO REGULATE COMMERCE 
 
 fully applicable. It is not obliged to turn the traffic over 
 to its competitor. 
 
 Where a shipper has written specific routing instruc- 
 tions in the bill of lading, and also inserted a rate which 
 does not apply over the route specified, it is the duty 
 of the initial carrier to ascertain which route the shipper 
 wishes used.^" This rule does not apply, however, so 
 as to charge the initial carrier with naisrouting where it 
 fails to turn over the shipments to a competing carrier 
 with a lower rate. 
 
 Where a shipping ticket and bill of lading are both 
 executed by a consignor, it is commonly the custom for 
 the shipping ticket to be made out in accordance with 
 the tendering of the shipment to the carrier. In order 
 promptly to get the shipment under way, the carrier re- 
 lies upon the iastructions of the shipper, as shown in the 
 ticket in executing its waybill. This custom operates to 
 the advantage of the shipper in securing prompt trans- 
 portation and benefits the carrier and the public in pre- 
 venting the terminal congestion and undue detention of 
 equipment. 
 
 Same subject: Shipper's instructions. — A shipper 
 may offer his freight without routing instructions, in 
 which event it is the duty of the carrier to route it via 
 the cheapest available practicable route. But the ship- 
 per is also entitled, when for any reason he specifies a 
 particidar route, to have his shipments move in accord- 
 ance with his instructions, at the established rate over 
 that route. It is the duty of the initial carrier to take 
 the necessary steps to carry out his routing instructions. 
 Any carrier misrouting a shipment in violation of spe- 
 cific instructions to the injury of the shipper violates the 
 Act and is responsible for the damage thereby caused to 
 the shipper. 
 
 "Conference Ruling 286 (f). 
 
SECTION 15 123 
 
 So where carriers literally observe the instructions 
 given for routing, when the shipment is reconsigned, and 
 send the shipment via the route designated, and apply 
 the through rate over such route, the carrier cannot be 
 held responsible for misrouting because it did not send 
 the shipment via a cheaper available route. Where the 
 shipper desires to prescribe the route over which his 
 property shall be transported, all of his, instructions in 
 that respect should be placed upon the shipping order 
 given to the carrier as well as upon the bill of lading 
 signed by the carrier and retained by the shipper. In 
 instances where the bills of lading and shipping orders 
 are prepared by the shipper, and the shipper notes upon 
 the biU of lading certain instructions that he fails to 
 note on the shipping order, the carrier cannot be held 
 liable for misrouting if it complies with the instructions 
 on the shipping order. 
 
 Same subject: Liability for\misrouting. — ^Where rout- 
 ing instructions are given "under which more than one 
 route may be selected by the carriers, the presumption 
 is that the lowest rate will*be applied by them. The bur- 
 den is upon the carrier charged with misrouting to show 
 that it applied such rate. 
 
 Larger lines and systems, when they are intermediate 
 or connecting carriers, not infrequently relieve small ini- 
 tial carriers of the responsibility for correct routing, and 
 from the nature of their larger traffic and wider oppor- 
 tunities for knowing what are the reasonably direct 
 routes, they ought in many cases to be wUling to do this. 
 With respect to shipments to distant and unusual points, 
 it is not reasonable to expect that the initial line, and 
 often even its immediate connections, will be able to give 
 specific routing, through to destination; in such cases, 
 they ought not to be held to any greater duty than that 
 of indicating the proper or usual gateway to destination. 
 
124 THE ACT TO REGULATE COMMERCE 
 
 Carriers at fault in misrouting are liable for damages 
 represented by higher charges than would have been law- 
 fully assessable had the misrouting not occurred. In this 
 case, liability is not limited to such damage as could rea- 
 sonably have been anticipated, since a shipper cannot be 
 deprived through a carrier's negligence of any lawful 
 privilege offered by another carrier, especially after due 
 diligence on his, part to secure such advantage. 
 
 Jurisdiction over electric lines. — Section 15, as we 
 have seen, provides that the Commission shall not estab- 
 lish through routes with electric lines not engaged in the 
 general business of carrying freight in addition to their 
 passenger and express business. Electric railways are 
 common carriers by railroad, within the meaning of the 
 Act, to the above extent, and when engaged in interstate 
 commerce are subject to the jurisdiction of the Commis- 
 sion. Naturally, when subject to the law it has the right 
 to obtain the benefits of that law. 
 
 The public, while it should not attempt to protect it- 
 self against combination by rail in so far as to prevent 
 good and economical service, may well protect itself 
 against the control of trolley lines and the prevention of 
 competition in that field. Still, competition is not de- 
 structive of railroad business, proper; certain kinds of 
 business can be done to better advantage by the trolley 
 than by the steam road, just exactly as certaiij other 
 kinds ought to go by water rather than by rail. Public 
 interest requires that these three forms of transporta- 
 tion should be kept distinct, so that each may operate in 
 its own sphere. 
 
 This applies to trolley lines that are of reasonable im- 
 portance in competition against steam lines. It does not 
 apply to those lines which may be constructed by a steam 
 railroad in the extension or completion of its own system, 
 as the kind of motive power is not significant. A branch 
 
SECTION 15 125 
 
 line, proper, may as well be operated by electricity as by 
 steam, and no reason is obvious why the building of such 
 branch lines ought not to be in every legitimate way en- 
 couraged. 
 
 Jurisdiction over business secrets. — Section 15 pro- 
 vides that it shall be unlawful for any carrier or any offi- 
 cer, agent, or employe of such common carrier, or for any 
 other person or corporation lawfully authorized by such 
 common carrier to receive information therefrom, know- 
 ingly to disclose to, or permit to be acquired by, any 
 person or corporation other than the shipper or con- 
 signee, without the consent of such shipper or consignee, 
 any information concerning the nature, kind, quantity, 
 destination, consignee, or routing of any property ten- 
 dered or delivered to such common carrier for interstate 
 transportation, which information may be used to the 
 detriment or prejudice of such shipper or consignee, or 
 which may improperly disclose his business transactions 
 to a competitor. It is also unlawful for any person or 
 corporation to solicit or knowingly receive any informa- 
 tion that may be so used. 
 
 But information may be given in obedience to legal 
 process, or by a carrier to another carrier or its duly au- 
 thorized agent, for the purpose of adjusting mutual 
 traffic accoimts in the ordinary course of business. 
 
 This particular provision has caused considerable re- 
 adjustments of those arrangements under which certain 
 large shippers operated facilities of the railroad, such as 
 terminals, cars, and the like. It has been held that under 
 Section 15 it is unlawful for a common carrier to dis- 
 close to the ultimate consignee the name of the original 
 consignor of a shipment reconsigned in transit by the 
 original consignee. As a typical case, it has been held 
 that a shipper of salt does not have to deliver his ship- 
 ments to a boat line controlled by competitor, and that 
 
126 THE ACT TO REGULATE COMMERCE 
 
 such boat line, althongli it publishes rates on salt in cargo 
 lots, cannot be considered a common carrier, but a pri- 
 vate facility of the salt company by which it is owned.^^ 
 
 So where the tariff of a carrier provided that shippers 
 of single cans of milk wished refrigeration, they should 
 deliver their cans to competitors operating leased cars, 
 who would charge certain prescribed rates. It was held 
 that Section 15 of the Act clearly indicates an intent upon 
 the part of Congress to secure to every shipper immunity 
 from a disclosure of his business at the hands of a com- 
 mon carrier, and the rule referred to was unlawful.^^ 
 
 Arbuckle Bros, operate, at New York City, their own 
 property as the Jay Street Terminal of defendants. 
 Complainant is a competitor of Arbuckle Bros. To meet 
 its complaint of unjust discrimination defendants offered 
 to receive the sugar of complainant at the Jay Street 
 Terminal. It was held that to offer complainant a re- 
 ceiving station on the dock of powerful competitors where 
 its shipments would be handled and billed out by its com- 
 petitors, thus exposing to them the names of complain- 
 ants' customers, its markets, and the course of its busi- 
 ness, is a suggestion that overlooks the duty of impar- 
 tial service by defendants to all their shipping pub- 
 lic. It violates the Act as amended, which makes it un- 
 lawful for an interstate carrier to "disclose his business 
 transactions to competitors. ' '*^ 
 
 Jurisdiction over water carriers: Discrimination and 
 rebates. — ^Very often carriers as well as shippers use 
 boat lines as a method of getting lower rates or to dis- 
 criminate against competitive shipments or lines. Sev- 
 eral principles have been evolved governing situations of 
 this character. 
 
 "Colonial Salt Co. v. M. I. & I. Line, 23 I. C. C. 358, 366. 
 "Albree v. B. & M. R. R. Co., 22 I. C. C. 303, 321. 
 "Federal Sugar Refining Co. v. B. & O. R. R. Co., 20 I. C. C. 200, 
 211. 
 
SECTION 15 127 
 
 A boat line incorporated as a common carrier obtained 
 its facilities from a salt company by which it was owned 
 and in whose interest it was operated; it published no 
 rates except upon salt in cargo lots ; its rates were manip- 
 ulated for the benefit of the salt company by whose 
 agents and employes all shipments had to be handled. It 
 was held that the boat line was a mere device to defraud 
 the law, and payments made to it by connecting rail car- 
 riers in the guise of divisions are rebates. But a rail- 
 road line has the right to reserve for certain boat lines 
 certain of its water terminals, provided such reserva- 
 tions do not effect discrimination against traffic destined 
 to such waterside terminals and to be carried therefrom 
 by other boat lines.^* 
 
 It is illegal discrimination for a rail carrier to refuse 
 to issue through bills of lading, except as to certain pre- 
 ferred water carriers. A railroad may not have a pre- 
 ferred line of steamships to the exclusion of other ships. 
 But a railroad has the right to reserve wharves for its 
 own use and for the use of such water carriers as it pre- 
 fers, provided it affords, to the public, access to equal 
 facilities elsewhere at equal rates. Free wharfage, how- 
 ever, is a legitimate means of making a port attractive 
 to ocean lines, and parties interested in pursuing that pol- 
 icy will be protected against coercion by carriers. 
 
 A water port is entitled to whatever advantage it can 
 obtain through transportation by water, but its location 
 does not entitle it to lower rates by rail. Although such 
 preference may lawfully be accorded by a carrier in the 
 protection of its own interests, it should not be acquired 
 except in cases where manifest wrong would otherAvise 
 result. Nevertheless, the Commission does favor the ex- 
 istence of lower rates at ports put into effect by rail car- 
 
 "Mobile Chamber of Commerce v. M. & 0. R. R. Co., 23 I. C. C 417. 
 427. 
 
128 THE ACT TO REGULATE COMMERCE 
 
 riers to meet water competition. A rail carrier may con- 
 trol or connect with a line of steamships engaged in for- 
 eign commerce, with which it may interchange business 
 as freely as with another rail carrier ; and it may quote 
 a combined rate for the through movement, the railroad 
 company acting as the agent of the steamship company in 
 so doing. An inland carrier may go into the foreign ship- 
 ping business without contravening any provision of the 
 Act ; nor is there anything in such statute which denies 
 to a rail carrier the right to quote a rate from an inland 
 point to a foreign destination over its own through route 
 or any other route. But with such carriers, engaged in 
 foreign business, the rail carrier has, so far as this law 
 is concerned, a purely contractual or proprietary relation 
 — ^not a relation related or controlled in any manner by 
 this Act. 
 
 On foreign commerce the rate to be published with the 
 Commission should be the rate to the port and from the 
 port — an open rate, which anyone who desires to do so 
 may use with equal advantage. The publication of such 
 rate does not in any manner limit the very valuable priv- 
 ilege of through billing. Such through billing should 
 clearly separate the liability of the rail and the ocean car- 
 rier, and show the published rate of the inland carrier. 
 The routing of the freight, however, should remain with 
 the shipper, and upon him may be imposed no greater 
 charge to the port when his freight goes by one ocean 
 line than by another.^^ 
 
 Jurisdiction over allowances: In general. — Section 
 15 also provides that if the owner of property trans- 
 ported under the Act directly or indirectly renders any 
 service connected with such transportation, or furnishes 
 any instrumentality used therein, the charge and allow- 
 
 "Cosmopolitan Shipping Co. v. Hamburg-Americein Packet Co., 13 
 I, C. C. 266, 281, 
 
SECTION 15 129 
 
 ance therefor shall be no more than is just and reason- 
 able ; and the Commission may, after hearing on a com- 
 plaint or on its own initiative, determine what is a rea- 
 sonable charge as the maximum to be paid by the carrier 
 or carriers for the services so rendered, or for the use 
 of the instrumentality so furnished, and may fix the same 
 by appropriate order. Section 15, therefore, gives the 
 Commission the right to fix allowance where the shipper 
 renders any service connected with the transportation, 
 that is, a service which the railroad ought to perform. 
 
 Very often shippers perform certain services, such as 
 the compression of cotton, repairing of cars, elevation of 
 grain, lighterage, staking, transfer and the like, which 
 it is the duty of carriers to perform. For various rea- 
 sons the latter do not desire to do this, but prefer the 
 shipper to do it and pay him what is called an allowance 
 for the performance of such service. 
 
 These allowances have in the past been productive of 
 a great deal of harm, as they have been the source of 
 rebating. Large shippers, such as the steel mills, for in- 
 stance;, with an exhaustive system of switching cars 
 among the various furnaces composing their plant, force 
 an allowance from the carrier for this service, claiming 
 that it is the duty of the carriers to deliver or take away 
 the cars at the mouth of the furnace or at certain speci- 
 fied points. The lumber mills operating logging roads 
 have forced allowances from the carriers by claiming 
 that it was their duty to set in or take the cars from the 
 forest. The tonnage of these shippers is generally so 
 large that the railroad cannot afford to antagonize them 
 by refusing to grant such allowances. Indeed, there has 
 been generally so much competition to obtain this ton- 
 nage that some one carrier would generally be only too 
 willing to pay the allowances to get the business. Hence, 
 what one will do, all are compelled to do. 
 
130 THE ACT TO REGULATE COMMERCE 
 
 In many instances the Commission has held such allow- 
 ances to be illegal, and has ordered the raUroads to dis- 
 continue making them. This is a subject of such impor- 
 tance in the traffic field that it will be considered some- 
 what in detail. 
 
 The Commission has jurisdiction over allowances made 
 by carriers to shippers as performing a transportation 
 service. Elevation of grain, for instance, is made such 
 a part of transportation as to bring it within the juris- 
 diction of the Commission, which is authorized to deter- 
 mine what is a reasonable allowance to the shipper for 
 such service. 
 
 Treatment of grain in the elevators, the cleaning, clip- 
 ping, mixing, inspecting, and grading of it, are trade 
 services; they do not pertain to transportation. No 
 power had ever been granted to the Interstate Commerce 
 Commission to regulate, to prohibit, to separate from the 
 service of elevation and transfer in transit or from any 
 other transportation service or to interfere with this 
 transportation service. The Commission, however, has 
 no power to forbid carriers from paying or allowing, for 
 the elevation and transfer of grain in transit, reasonable 
 compensation, merely because there is a possibility of a 
 future violation of the law arising out of such allow- 
 ances. But the Commission has the power to limit and 
 prescribe the amount that a carrier may pay a shipper 
 for the performance of a part of the carrier's duty and 
 service in connection with the transportation of his 
 freight. 
 
 Same subject: Discrimination. — ^A carrier is not war- 
 ranted, under Section 15, in making an allowance to a 
 shipper who provides a facility and perfornas a service 
 in the transportation of his oAvn property, while refusing 
 a similar allowance to another and competing shipper 
 who provides a similar facility and performs the same 
 
SECTION 15 131 
 
 service, in the transportation of his property. No vio- 
 lation of the Act can be predicated solely upon the fact 
 that a carrier makes with one independent company a 
 contract more favorable than with another for a service 
 which that carrier is bound or undertakes to perform 
 The Act deals only with the obligation of carriers as ear- 
 ners, and in no way attempts to regulate or interfere 
 with matters involving their duties to shippers or passen- 
 gers as such. Compression of cotton, for instance, is a 
 service which the carrier procures for its own conveni- 
 ence; and when that service is performed in such a man- 
 ner as not to prejudice or prefer a particular sliipper or 
 community, the Act does not limit the freedom of the car- 
 rier in making contracts with respect thereto. 
 
 Same subject: Specific allowances.— Allowances are 
 often made in connection with the handling of specific 
 commodities and some of these specific allowances are 
 treated herewith. 
 
 Compression of cotton. — Carriers (have the right to 
 compress cotton in transit. They also have the right to 
 grant or allow to shippers or owners of cotton the priv- 
 ilege to concentrate uncompressed cotton at designated 
 compresses on their lines for such treatment as the ship- 
 pers or owners may desire to give it, with the right of 
 the shippers or owners, or deliver the cotton back to the 
 carriers for transportation to interstate or foreign desti- 
 nations at the through rates from point of origin. What- 
 ever charges are made must, however, be just, reason- 
 able, and non-discriminatory. They may not pay to com- 
 press companies any unjust or unreasonable charges. 
 
 Cooperage and grain doors. — In a typical case, com- 
 plainants asked that defendant be required to provide by 
 published rule tliat shippers of grain may, when occasion 
 makes it necessary, cooper the car that is furnished, and 
 recover therefor an allowance not to exceed $5, including 
 
132 THE ACT TO REGULATE COMMERCE 
 
 an allowance for grain doors. It appeared that shippers 
 of grain from Washington and Oregon were furnished 
 cracked and old box cars by defendant for the carrying 
 of grain, which they repair themselves in order to save 
 delay. It was held that it is the primary duty of a rail- 
 road to furnish equipment that is usable, and in the event 
 that the car furnished is unfit, the shipper should reject 
 it and call for another. 
 
 Allowances of the kind requested are of a dangerous 
 ijharacter. The carrier cannot tell what the actual 
 amount of material and labor used by the shippers was. 
 The car is loaded immediately upon being repaired and 
 is sent to some far distant point. There are no means 
 of adequately checking the expenditure of the shipper, 
 so that it becomes extremely easy to turn such allowances 
 into real rebates. It is a safer and more reasonable prac- 
 tice to curtail such allowances than to extend them, since 
 the Commission cannot in any way police such repairs. 
 It is a far wiser policy for the carriers to repair their 
 own equipment than to farm it out to shippers. A rule 
 of this character could not be limited to the repair of cars 
 for a shipment in bulk of grain without establishing a 
 precedent as to allowances for other commodities. 
 
 Elevation of grain. — Elevation of grain is a privilege 
 for which allowances are frequently made. There are 
 two kinds of elevation, one of which may be termed trans- 
 portation elevation, consisting of the passing of the grain 
 through an elevator for the purpose of transferring it 
 from car to car and obtaining its weight. The other is 
 commercial elevation. This involves various processes 
 in the treatment of the grain itself, such as cleaning, mix- 
 ing, clipping, drying, etc. The first sort of elevation is 
 an incident to the transportation of the grain ; the second, 
 to the merchandising of the grain.^® 
 
 "Elevation Allowances, 24 I. C. C. 197, 199. 
 
SECTION 15 133 
 
 A carrier has no right, under the pretext of a transfer 
 which it does not require, to furnish a grain dealer com- 
 mercial elevation, or what amounts to the same thing, to 
 pay an elevation allowance for the commercial elevation 
 of his grain; and if it does so, it must accord the same 
 privilege or make the same payment at another point.^'^ 
 
 Moreover, it is extremely difficult to separate transpor- 
 tation elevation from commercial elevation. Both things 
 are part of the same general process. It is impossible 
 to separate the different items of expense and to say with 
 confidence what belongs to transportation and what to 
 commercial elevation. The Commission believes that the 
 payment of all elevation allowances and the giving of all 
 free elevation should be prohibited, for in no other way 
 can discrimination be prevented. Every service of bene- 
 fit to a shipper should be charged for at a reasonable 
 sum, and no charge should be allowed one shipper over 
 another. The Supreme Court of the United States has, 
 however, decided that some sort of elevation allowances 
 may be made. 
 
 Lighterage. — ^An interesting case is as follows: Ar- 
 buckle Bros, operated their warehouse and property at 
 the foot of Bridge Street, Brooklyn, as the Jay Street 
 Terminal of the certain carriers. For the use of the 
 dock, and for their services in conducting it as a freight 
 station and in floating and lightering shipments between 
 the dock and the regular terminals of defendants in 
 Jersey City, Arbuckle Bros, received from defendants 
 allowances ranging from 3 to 4-|- cents per 100 pounds 
 on all merchandise passing through the terminal, 
 whether inbound or outbound. 
 
 The floats and barges used in this service were owned 
 by Arbuckle Bros,, and all persons employed in the 
 
 "Traf. Bur. Mer<jRants' Exchange v. C. B. & Q. B. R. Co., 22 I. C. C. 
 496, 603. 
 
134 THE ACT TO REGULATE COMMERCE 
 
 handling of freight on the water as well as on the dock 
 were on the payrolls of that firm. Immediately adjoin- 
 ing the dock property, Arbuckle Bros, have erected a 
 large sugar refining plant of their own. One third of 
 the .total tonnage handled through the dock, inbound or 
 outbound, is sugar received or shipped by them. The 
 other two thirds are merchandise received or shipped by 
 the public generally. Complainant was a competitor of 
 Arbuckle Bros., with its refinery located at Yonkers. It 
 shipped its sugar by a private transportation agency to 
 Pier 24 and from thence to the New Jersey terminals of 
 defendants, the same terminals to which Arbuckle Bros, 
 deliver. It had to pay 3 cents per 100 pounds for this 
 service to the private agency it employs, and received no 
 allowance from defendants. 
 
 It was held that when a carrier undertakes to have a 
 terminal operated for it by the owner of the property 
 and the owner happens also to be a large shipper over its 
 line, the law reads into the agreement between the car- 
 rier and the owner the peremptory requirement that the 
 arrangement shall not result in any undue and unjust dis- 
 crimination against other shippers competing with the 
 owner in the same line of business ; and that the terms 
 under which defendant carriers accept the sugar of Ar- 
 buckle Bros, at their regular stations west of the river, 
 result in inequalities, preferences, and discrimination, 
 and are unduly and unjustly prejudicial to the rights of 
 the complainant as a shipper of sugar over the lines of 
 defendants in competition with Arbuckle Bros, in the 
 same markets.^* 
 
 Same subject: Legality of allowances. — Allowances 
 and divisions must have a proper relation to the service 
 performed and be such in amount as not to effect a rebate 
 
 "Federal Sugar Refining Co. v. B. & 0. E. E. Co., 20 I. C. C. 200, 
 214. 
 
SECTION 15 135 
 
 to the industry. Section 15 clearly implies that a just 
 and reasonable allowance may be made to the owner of 
 property transported when such owner renders a service 
 coimected with the transportation, or furnishes an in- 
 strumentality used in connection with it. It must be re- 
 membered that the delivery of goods to a carrier and the 
 receiving of goods from a carrier are duties devolving 
 upon the shipper, for which the carrier cannot be com- 
 pelled to pay ; and it is a violation of the Act for the lat- 
 ter to make allowances based upon the performance by 
 shippers of services which shippers are legally bound to 
 render for themselves. The fact that the rails, locomo- 
 tives, and cars of an industry have been turned over to 
 an incorporated railroad company, owned and operated 
 by the industry or in its interest, does not divest those 
 appliances of their character as a plant facility, if such 
 in fact is the case. If the rails were laid and the equip- 
 ment acquired for the use of the industry as a facility 
 in the process of manufacture and production, and are 
 so used, the fact that some outside traffic may be carried 
 over the same rails does not modify the character of 
 what is done over them for the industry. If in such a 
 case the tracks and equipment are a facility of the plant 
 and are so used in the process of manufacture, "*w^hat is 
 thus done for the controlling industry cannot be regarded 
 as a service of transportation. It is clear that a division 
 allowed by a public carrier out of the rate under such 
 circumstances is a rebate to the industry. The test is : 
 What is the real relation to the industry of the tap line? 
 The common ownership of an industry and a short line 
 serving it is not in itself sufficient to divest the railroad 
 of its status as a common carrier. 
 
 In the matter of making allowances for services ren- 
 dered in connection with transportation, the only services 
 of the shipper that can be compensated for by the carrier 
 
136 THE ACT TO REGULATE COMMERCE 
 
 under the Act are such as are rendered by the shipper 
 after the carrier's duty to take and transport the goods 
 has begun. 
 
 It is true that under Section 15 allowances are fre- 
 quently made by a trunk line to an. industry for services 
 rendered by a line owned by the latter or its stockhold- 
 ers, as an instrumentality furnished by the shipper. But 
 in such case the only concern of the Commission is to 
 satisfy itself that the allowances are not above the rea- 
 sonable cost of the service, and, therefore, are not indi- 
 rectly a rebate of a part of the trunk line's charge to the 
 owning industry, through the medium of the latter 's 
 railway. 
 
 Same subject: Plant facility. — The following cases 
 illustrate what services by the shipper are not the per- 
 formance -of a transportation service. Formerly, car- 
 riers delivered loaded cars to complainant's exchange 
 tracks at Catasauqua. Complainant constructed tracks 
 leading from the exchange tracks into its yards, and sup- 
 plied locomotives to draw the loaded cars into its yards 
 and to return loaded cars of its own products. Later, 
 other industries grew up beyond complainant's plant, 
 and complainant extended its tracks to such industries 
 and charged them a stipulated price per car for moving 
 cars to and from defendant's terminal. Said other in- 
 dustries were allowed compensEttion for the service that 
 they secured from complainant. Subsequently, complain- 
 ant incorporated its private railroad and demanded that 
 defendants make it an allowance for hauling cars back 
 and forth between complainant's yards and its team 
 tracks. 
 
 It was held that the service was not one which defend- 
 ants owed complainant a duty to perform ; that defend- 
 ants might properly allow to other industries compensa- 
 tion for the hauling of cars to their plants, since such 
 
SECTION 15 137 
 
 service was merely the equivalent of the service rendered 
 by defendants in placing the cars on complainant's ex- 
 change tracts ; and that complainant was not entitled to 
 compensation for the service rendered by its railroad, 
 such service being in the nature of a plant f acility.^^ 
 
 Complainant, General Electric Company of Schenec- 
 tady, New York, filed a complaint against the New York 
 Central & Hudson River Eailroad to determine its 
 right to receive an allowance from defendant rail- 
 road for services performed by complainant in 
 moving empty and loaded cars between the stor- 
 age tracks and complainant's factories and shops. 
 Its factory and shop yard occupies some 180 acres 
 of land, and there were about 140 buildings. It had 
 constructed 3 miles of storage together with connecting 
 switch tracks of standard gauge, aggregating 12 miles in 
 length and occupying some 23 acres of land ; and in addi- 
 tion thereto had laid 7 miles of narrow gauge electric 
 tracks crossing and recrossing the standard gauge Sys- 
 tem. The switch tracks leading to complainant's indus- 
 tries were from 400 to 500 feet long. Defendants had no 
 right and under the circimistances it was impossible for 
 them to make use of complainant's network of tracks, 
 which was under the exclusive control of complainant. 
 Complainant used its own locomotives and electric mo- 
 tors in moving loaded and unloaded cars in its yard, and 
 performed about 112,000 carload movements a year. De- 
 fendants had been long accustomed to move cars free of 
 charge between their tracks and factories of other ship- 
 pers at Schenectady. For some 12 years defendants, 
 under an agreement, had been allowing compensation for 
 the service performed by complainant. It was held that 
 defendants owed no duty to move the cars over complain- 
 ant 's network of tracks, and complainant was not entitled 
 
 "Crane Iron Works v. Central E. E. Co., 17 I. C. C. 514, 518-520. 
 
138 THE ACT TO REGULATE COMMERCE 
 
 and could not be permitted to receive compensation 
 therefor.*" 
 
 It must not be considered, however, that all allowances 
 to tap lines are rebates, merely because in certain in- 
 stances the Supreme Court has specifically held that they 
 are not. 
 
 Tap lines connecting timber districts and lumber mills 
 with trunlf lines are common carriers of proprietary as 
 well as non-proprietary lumber. As such they are en- 
 titled to participate in joint rates, where the fact that the 
 tracks are owned by the persons who also own the timber 
 and mills that they principally serve is not shoAvn to be 
 inconsistent with the laws of the state in which they are 
 organized and operated, lumber being excepted from the 
 commodities clause.*^ 
 
 Lumber being excepted from the commodities clause, it 
 was held, affirming the decision of the Commerce Court, 
 that a tap line is entitled to the same allowance from a 
 trunk line out of the joint through rate for logs and lum- 
 ber offered the tap line by its proprietary company, that 
 it receives out of the rate for non-proprietary logs and 
 lumber.*^ 
 
 Same subject: Allowances as rebates. — ^If there is a 
 holding out as a common carrier for hire, and if there is 
 an ostensible and actual movement of traffic for the pub- 
 lic for hire, the status of a common carrier exists, 
 whether the holding out is by a company or by an individ- 
 ual. But such a holding out and the existence of an actual 
 traffic are not conclusive in all cases. Where the holding 
 out is in furtherance of the development of a plant facil- 
 ity and the alleged carrier is able to pick up some traffic 
 
 "Gen. Elec. Co. v. N. Y. C. & H, E. R. R. Co., 14 I. C. C. 237, 242, 
 243, 244. 
 "U. S. V. L. & P. Ey. Co., 234 U. S. 1. 
 "U. S. V. Butler County E. E. Co., 234 U. S. 29. 
 
SECTION 15 139 
 
 that is incidental to that purpose, it must be regarded 
 simply as a cloak or device to effect unlawful results.** 
 The mere fact that a railroad is owned by a corporation 
 which also owns the stock of the largest shipper over it, 
 and that it was originally organized and buUt for the 
 purpose of doing the work of that shipper, is not con- 
 trolling against its being held a common carrier. But 
 such a situation caUs for the closest scrutiny of all 
 charges and practices to ascertain whether there is un- 
 due discrimination through divisions of allowances that 
 are the equivalent of rebates to the shipping owner.** 
 
 Same subject: Criminal liability.— It is important to 
 note, in addition to the general principles which have 
 been discussed, that there is a criminal liability under 
 both the Interstate Commerce Act and the Elkins Act 
 for the giving of rebates in the shape of allowances. This 
 subject is discussed more in detail under Section 10, and 
 in the treatment of the Elkins Act. 
 
 "Tap Line Case, 23 I. C. C. 277, 292. 
 
 "Crane E. E, Co. v. P. & E. E. Co., 15 I. C. C. 248, 252. 
 
SECTION 16 
 1. Reparation 
 
 Jurisdiction of Commission. — Section 16 provides that 
 if, after hearing on a complaint, the Commission shall 
 determine that any party complainant is entitled to an 
 award of damages under the provisions of the Act for a 
 violation thereof, it shall make an order directing the 
 carrier to pay to the complainant the sum to which he is 
 entitled on or before a day named. 
 
 If the carrier does not comply with the order within 
 the time limit specified, the complainant, or any person 
 for whose benefit such order was made, may file in a 
 United States court a petition setting forth briefly the 
 causes for which he claims damages, and the order of the 
 Commission in the premises. Such suit then proceeds in 
 all respects like other civil suits for damages, except that 
 on the trial the findings and order of the Commission are 
 prima facie^ evidence of the facts therein stated, and 
 except that the petitioner is not liable for costs either 
 in the trial court or at any subsequent stage of the pro- 
 ceedings, unless they accrue upon his appeal. If the 
 petitioner finally wins, he is allowed a reasonable attor- 
 ney's fee, taxed and collected as a part of the costs of the 
 suit. All complaints for the recovery of damages must 
 be filed, however, with the Commission not later than two 
 years from the time the cause of action accrues. A peti- 
 tion for the enforcement of an order for reparation must 
 be filed in the court not later than one year from the date 
 of the order. 
 
 'That is, they will be accepted without question. 
 
 140 
 
SECTION 16 141 
 
 Under Section 16, the Commission is given the right 
 to award damages for a violation of the Act. As this 
 power is an important one and frequently invoked, it will 
 be considered somewhat in detail. 
 
 Necessity of primary action by Commission. — ^Before 
 a shipper can obtain redress for a violation of the Act, 
 it is necessary that the Commission determine that the 
 Act has been violated; it can then award damages.^ In 
 giving the Commission jurisdiction over reparation, it 
 was the manifest intent of Congress to provide shippers 
 with a method of obtaining an award of damages other 
 than by the expensive and tedious process of the law. 
 
 The Interstate Commerce Commission has power to de- 
 termine the reasonableness of rates, and likewise is 
 authorized to award reparation. 
 
 Where the rates charged were those which had been 
 duly fixed by the carrier according to the Act, and had 
 not been found to be unreasonable by the Interstate Com- 
 merce Commission, a shipper cannot maintain an action 
 at law in the courts for excessive and unreasonable 
 freight charges exacted on interstate shipments. But 
 where the Commission finds the rate exacted to have been 
 unreasonable, it may award as reparation the difference 
 between that rate and the one which is reasonable, not- 
 withstanding the former was the rate duly established by 
 the carrier for the time being.^ 
 
 The Act confers authority on the Commission to in. 
 vestigate complaints alleging unreasonable charges, and, 
 after full hearing on formal complaint, to condemn such 
 charges as are found to have been unreasonable, and 
 to award reparation thereunder.* The Commission is 
 authorized to award reparation to any person or persons 
 
 'See "Procedure Before the Interstate Commerce Commission." 
 •Allen & Co. v. C. M. & St. P. Ry. Co., 16 I. C. C. 293, 295. 
 •Swift & Co. V. C. & A. E. R. Co., 16 I. C. C. 426, 428. 
 
142 THE ACT TO REGULATE COMMERCE 
 
 found to be damaged througli a violation of the Act by 
 any common carrier subject to its provisions. 
 
 Tbe jurisdiction and authority of the Commission is 
 well settled in respect to its power to award damages 
 where the published rate has been observed by the car- 
 rier, but such rate has been declared unreasonable. To 
 hold that the publication of rates is conclusive of their 
 reasonableness would go far toward defeating one of the 
 leading purposes of the Act.^ 
 
 Necessity and effect of finding of unreasonableness. — 
 Before the Commission can award damages for the exac- 
 tion of an unreasonable rate it must make a finding that 
 the rate is unreasonable. 
 
 The question as to whether or not rates are unreason- 
 able or discriminatory is vitally related to all questions of 
 reparation for their exaction.* 
 
 Where the Commission has found a rate unreasonable, 
 it cannot deny reparation on shipments made prior to 
 the filing of the complaint but within the limitation 
 period on the ground that the shipper was guilty of 
 laches'' in bringing the complaint, at the same time grant- 
 ing reparation on shipments made subsequent to the filing 
 of the complaint.^ 
 
 The Commission has no right to demand of the shipper, 
 as a prerequisite to an order of reparation, "conclusive 
 proof" of the unreasonableness in the past of the rate 
 complained of, a preponderance of the credible evi- 
 dence being sufficient.^ 
 
 The Commission has authority to award reparation to 
 a shipper from whom has been exacted a rate in excess of 
 
 •Nicola, stone & Myers Co. v. L. & N. R. R. Co., 14 I. C. C. 199, 204. 
 
 •Phillips Co. V. G. T. W. Ey. Co., 195 Fed. 12, 18. 
 
 'A legal term meaning such an unreasonable delay in asserting an 
 alleged right as should equitably debar the party. 
 
 'Russe & Burgess v. I. C. C, 193 Fed. 678, 680; Thompson Lum- 
 ber Co. V. I. C. C, 193 Fed. 682, 683. 
 
 'Thompson Lumber Co. v. I. G C, 193 Fed. 682, 683. 
 
SECTION 16 143 
 
 the lawfully published schedule rate, and this without a 
 determination on its part that the rate exacted is unrea- 
 sonable.^" 
 
 It would be a manifestly harsh rule that would assume 
 a rate now condemned as unreasonable to have been so 
 for two years, or would fix the Statute of Limitations in 
 the past as a basis for the payment of money by the car- 
 riers on past shipments, especially when no complaint 
 had been made against them in that period. The law 
 established no such presumption nor is it a necessary 
 sequence that the rate has been unreasonable for any 
 period in the past. Neither does it seem that the bona 
 fide action of the carriers in the necessary exercise of 
 their judgment within reasonable limits should always be 
 at their peril — that they should be liable for reparation 
 for the difference between rates initiated upon their judg- 
 ment and those later changed upon the judgment of the 
 Commission. 
 
 The awarding of reparation by no means necessarily 
 follows the reduction of a rate, whether by the voluntary 
 action of the carriers or by order of the Commission. 
 Whatever may be the nature of the facts, circumstances, 
 and conditions appearing in a particular case where 
 reparation is involved, whether on account of excessive 
 rates or unjust discrimination, there must be such degree 
 of certainty and satisfactory conviction in the mind and 
 judgment of the Commission as would be deemed neces- 
 sary under the well-established principles of law as a 
 basis for a judgment in court. " 
 
 When the Commission reduces a rate, it does not neces- 
 sarily follow that it will award reparation on the basis of 
 the new rate. There is no conclusive presumption that a 
 
 "C. B. & Q. R. E. Co. V. Feintuch, 191 Fed. 482, 486. 
 "Anadarko Cotton Oil Co, v. A. T. & S. F. B. R. Co., 20 I. C. C. 43, 
 50, 51. 
 
144 THE ACT TO REGULATE COMMERCE 
 
 rate reasonable today was reasonable a year before or a 
 day before, since reasonable rates vary from time to time, 
 and some point of division must be found. Where, there- 
 fore, rates have been established and maintained by the 
 carriers in good faith, especially where they have been 
 long in effect and acquiesced in by shippers without pro- 
 test, the Commission will not award reparation even if 
 the rate is reduced, unless it clearly appears that the 
 rates paid in the past have been excessive.^^ 
 
 When the Commission reduces a rate and prescribes 
 what will be the just and reasonable rate or rates to be 
 thereafter observed in such a case as the maximum to be 
 charged, it does not necessarily follow that for any length 
 of time prior to the date of the opinion reparation will be 
 awarded upon the basis of the rate so prescribed;^' 
 
 The Act authorizes the Commission to condemn an un- 
 reasonable rate, to prescribe a rate to be applied in lieu 
 thereof, and to award damages under the rate so con- 
 demned; but in all proceedings before the Commission, 
 both formal and informal, the essential prerequisite to 
 any award of damages is the condemnation of a rate, 
 rule, or procedure that is made the basis of such award.^* 
 
 While the Act requires carriers to establish, file, and 
 publish their rates, and commands their strict observ- 
 ance, such publication of rates is not conclusive of their 
 reasonableness. It is the duty of the Commission to 
 award reparation for duly proved damages to the parties 
 injured by the exaction from them of unreasonable and 
 unjust charges, notwithstanding such charges may be in 
 accordance with the published rates.^^ 
 
 "Penrod Walnut & Veneer Co. v. C. B. & Q. R. R. Co., 15 I. C. C 
 326, 328. 
 "Morse Produce Co. v. C. M. & St. P. Ry. Co., 15 I. C. C. 334, 338. 
 "Pueblo Transportation Ass'n v. S. P. Co., 14 I. C. C. 82, 84. 
 "Nicola, Stone & Myers Co. v. L. & N. R. R. Co., 14 I. C. C. 199, 204. 
 
SECTION 16 145 
 
 The Commission has no jurisdiction to make orders for 
 reparation on account of any alleged excessive rate ex- 
 cept when, upon complaint, notice to the defendants, and 
 full hearing, such rate has been challenged and found to 
 be unreasonable.^® 
 
 Until the question of the reasonableness of the rates 
 shall be determined, no orders for reparation will be en- 
 tered on account of the alleged exaction of excessive 
 charges on shipments from points of origin to destina- 
 tions not involved in the former proceedings.^'^ 
 
 Carriers are not entitled to resist an award of repara- 
 tion fbr exactions made under a rate found to be unrea- 
 sonable on the ground that the shippers were not them- 
 selves damaged, but simply added the excess to the sell- 
 ing price, thereby casting the damage upon the public. 
 Wherever an unlawful and unreasonable rate is exacted, 
 the shipper is entitled to reparation, without the tri- 
 bunal's inquiring beyond the fact itself of the unreason- 
 able exaction.^* 
 
 Power to award tort damage. — ^While the Commis- 
 sion has power to award reparation for a violation of the 
 Act, it has no power to award damages growing out of 
 the carrier's default in some other respect. For instance, 
 the Commission has no power to award damages for in- 
 jury to shipments, because the Interstate Commerce Act 
 does not compel the carrier safely to transport the goods. 
 A few instances will be illustrative. 
 
 Depreciation of real estate values and loss of tenants 
 on account of the discontinuance of a passenger station 
 and train service thereat, are not such damages as are 
 cognizable by the Commission.^^ 
 
 "Nicola, Stone & Myers Go. v^ L. & N. R. R. Co., 14 I. G. G. 199. 
 206. ' 
 
 "Nicola, Stone & Myers Go. v. L. & N. E. R. Co., 14 I. C. C. 199, 
 205. 
 
 "Burgess v. Transcontinental Freight Bur., 13 I. G. G. 668, 679. 680 
 
 "Mattison v. Penn. R. R. Co., 23 I. C. G. 233, 235. 
 
146 THE ACT TO REGULATE COMMERCE 
 
 Complainant shipped by barge from Breveport, Missis- 
 sippi, to Cincinnati, Ohio, a cargo of rough oak, gum, and 
 cypress lumber. Upon arrival at Cincinnati, it was trans- 
 ferred into 37 cars, and charges based on a weight of 
 1,053,200 pounds were assessed. Complainant alleged 
 that, owing to negligent handling at Cincinnati, the lum- 
 ber when loaded into the cars was allowed to get wet 
 and absorbed water to the extent of 148,723 pounds. At 
 destination, complainant weighed dry 1,000 feet of each 
 kind of lumber shipped, applied such weights to the re- 
 spective aggregate number of feet in the cars, and ob- 
 tained an estimated dry weight of 904,477 pounds. It 
 asked reparation for the difference between such esti- 
 mated dry weight and the billed weight. It was held 
 that the Commission is without authority under the Act 
 to award damages for negligence of the kind here alleged, 
 such matters being within the jurisdiction of the courts.^" 
 
 Neither are damages due to inability to compete in 
 common market the subject of reparation. Damages 
 such as decline in the market price of a commodity and 
 lost commission for sale of ^uch commodity due to the 
 negligence of a carrier in not obeying reconsignment in- 
 structions, are not matters -^ithin the jurisdiction of the 
 ■ Commission. The Commission has no power to award 
 damages to a shipper for loss of business and the cancel- 
 lation of contracts of sale resulting from the granting by 
 a carrier of an unjustly discriminatory rate to the ship- 
 per's competitor. In such a case, resort must be had to 
 the courts. Since the Commission has no jurisdiction 
 over loss and damage claims not arising from any duty 
 imposed on the carrier by the Act, such as destruction of 
 property from accident, loss by stealing or fire, etc., 
 reparation should be refused for shrinkage in cattle due 
 
 ""Buffalo Hardwood Lumber Co. v. B. & 0. E. R. Co.. 21 I. C C 
 536, 538. 
 
SECTION 16 , 147 
 
 to delay in shipment caused by washoiats on the carrier's 
 lines. 
 
 Right to recover and necessity of protest. — In a suit 
 in the courts for damages against a carrier for unjust 
 discrimination in granting rebates to a competing ship- 
 per, a protest by the plaintiff against the payment of 
 charges assessed on his shipments is not prerequisite to 
 recovery. 
 
 In view of the necessary relations between the carrier 
 and shipper, many factors place the parties upon an un- 
 equal footing, so as to relieve the shipper from the neces- 
 sity of protest against the payment of an unlawful rate. 
 Some of these factors are: (1) The dependence in mod- 
 ern business life of the latter upon the former; (2) the 
 right and duty of the carrier in the first instance to fix 
 its charges; (3) its obligation to adhere to the same until 
 it be altered in the manner prescribed by law; and (4) its 
 right to enforce such charges by retaining possession of 
 the freight transported, or to demand payment of the 
 freight charges as a prerequisite to the transportation. 
 Moreover, inasmuch as proceedings for reparation for 
 damages before the Commission are purely statutory and 
 correspond to actions at law in tort,^^ the violation of the 
 law produces the injury and completes the offense, so 
 that the person injured does not have to perform any 
 conditions to entitle him to recover for the damage sus- 
 tained. For this reason protest upon payment of the 
 unlawful rate is unnecessary. 
 
 Necessity of first paying tariff rate.— It is not the 
 policy of the Commission to award reparation where 
 lawful charges have not been paid. Hence, before bring- 
 ing any complaint to the attention of the Commission, it 
 is advisable that all the freight charges be paid first. 
 
 "A tort is a private wrong. Actions in tort are for injuries sus- 
 tained through wrongful act other than breach of contract. 
 
148 THE ACT TO REGULATE COMMEECB 
 
 Parties entitled to recover. — ^Unless reparation was 
 claimed in the complaint upon wMcli snch decision was 
 based, or was awarded by tbe Commission, claims for 
 reparation based upon a decision of the Commission filed 
 by complainants not parties to the case in which such 
 decision was rendered will not ordinarily be allowed. 
 The Commission may, however, in the exercise of its dis- 
 cretion, upon good cause shown, and under unusual cir- 
 cumstances, specially consider a particular claim for 
 reparation of this class. 
 
 The court cases holding that either the' consignor or 
 the consignee may sue in case of loss or damage or breach 
 of the contract of affreightment, mean that each has a 
 beneficial interest to the extent of making either of them 
 a proper party plaintiff in such proceeding. These cases 
 do not in any way controvert t"he principle announced by 
 the Commission — that the party paying the excessive 
 charge is the one entitled to an award of reparation on 
 finding that the rate charged is unreasonable and there- 
 fore unlawful. 
 
 The well-settled rule of the Commission is that the 
 party who has been required to pay an unlawful rate is 
 the party to whom reparation should be awarded. The 
 person who handles produce on consignment is not en- 
 titled to it. 
 
 In any given case, reparation is due the person who has 
 been required to pay an unlawful charge. A shipper who 
 has paid such a charge and is the owner of the goods 
 transported is entitled to repayment, without the imposi- 
 tion of the impossible task upon the Commission of ascer- 
 taining the ultimate profits which accrued from his 
 business. He is entitled to reparation irrespective of his 
 profits.^^ 
 
 "Kindelon v. S. P. Co., 17 I. C. C. 251, 255, 
 
SECTION 16 149 
 
 Statute of Limitations. — The period of two years pre- 
 scribed by the statute witbin which the Commission is 
 allowed to award damages for acts arising under viola- 
 tions of the provisions of the Act, begins to run at the 
 time when the shipment is delivered and when it becomes 
 the legal duty of the carrier to collect its lawful charge — 
 not at the time of the payment of the freight by the 
 shipper. 
 
 In a typical case, shipments moved in October and 
 November, 1906, but on account of a controversy as to 
 the rates lawfully applicable, the payment of charges was 
 delayed until June 3, 1909. Complaint was not filed until 
 August 17, 1909. It was held that,^^ more than two years 
 having elapsed between the delivery of the shipments 
 and the institution of proceedings, the claims were 
 barred.^* 
 
 Method of obtaining reparation. — There are two 
 courses of procedure for the obtaining of reparation. 
 One is the filing of what is called a formal complaint, and 
 the other, an informal complaint. An informal complaint 
 is filed in a case where the carrier admits that it has vio- 
 lated the Act and is willing to make reparation to the 
 injured party. In such cases it signs with the complain- 
 ant the petition presented to the Commission, and asks 
 permission from the Commission to make reparation. 
 The other case, that of a formal complaint, arises 
 in contested cases, where the carrier will not admit that 
 it is at fault. An important thing to remember is that 
 in the complaint alleging discrimination, the exaction of 
 an unreasonable rate, or the like, the complainant must 
 demand reparation. Otherwise, damages cannot after- 
 wards be obtained, even if the rate or practice is ad- 
 judged to be in violation of the Act. 
 
 "Following Bliim Lumber Co. v. S. P. Co., 18 I. C. C. 430. 
 "Blodgett MiUing Co. v. C. I. & S. E. E. Co., 18 I. C. C. 439. 
 
150 THE ACT TO REGULATE COMMERCE 
 
 No reparation will be awarded on informal proceedings 
 which would not be awarded under the same set of facts 
 in a contested case. The Commission cannot accept as 
 conclusive any stipulation of parties as to the reasonable- 
 ness of a rate or a transportation regulation. The Com- 
 mission's conclusions on such matters must be reached 
 with due consideration for the conclusions which it has 
 already announced on the same subject, and for the 
 knowledge which it has already gathered or announced 
 on the same subject. The willingness of a shipper to re- 
 ceive and of a carrier to pay reparation upon certain 
 traffic, or under certain rates, can be approved by the 
 Commission only under a clear and decisive showing of 
 facts that would lead the Commission to award that 
 reparation in opposition to the carrier's wishes. It must 
 be prepared to award reparation to all others who might 
 have shipped during the same period under the same rate 
 and under substantially similar circumstances and condi- 
 tions.^^ 
 
 Court pleadings. — Often the Commission awards rep- 
 aration but the railroads refuse to obey the order of the 
 Commission. It is then necessary to bring an action in 
 the courts, based on the award of the Commission. In 
 such cases, Section 16 makes the findings of the Commis- 
 sion prima facie evidence of the fact therein stated. 
 
 In a suit in a state court to recover reparation for un- 
 just discrimination, the court is not required by Section 
 14 of the Act to take judicial notice of the decisions of 
 the Commission where they are not mentioned in the 
 pleadings or in the agreed statement of facts. This pro- 
 vision makes the decisions of the Commission as pub- 
 lished admissible in evidence without other proof of their 
 
 "•Swift & Co. V. C. & A. E. K. Co., 16 I, C. C. 426, 428. 
 
SECTION 16 151 
 
 genuineness, but does not relieve litigants from the neces- 
 sity of offering them in evidence,^^ 
 
 In a suit in a United States circuit court to recover the 
 excess of freight charges exacted above the published 
 rate, the declaration failed in terms to state the particu- 
 lar rates that had been passed upon by the Interstate 
 Commerce Commission, but indicated that it was the pur- 
 pose of plaintiff to incorporate by reference the pertinent 
 facts of the decisions into the declaration. It was held 
 that in determining the sufficiency of the declaration 
 upon demurrer, the court might examine the facts set out 
 in the decisions referred to.^'^ Any order of award, con- 
 clusion, opinion, or argument of the Commission must be 
 eliminated in determining the sufficiency of a declaration 
 which includes said report, since only facts found by the 
 Commission and alleged in the declaration can be con- 
 sidered in deciding whether or not a cause of action is 
 stated. This ruling is based on Section 14 of the Act, 
 requiring the Commission, in case damages are awarded, 
 to include in its report the finding of fact on which the 
 award is made, and on Section 16 of the Act, providing 
 that, in a suit to recover in a United States circuit court 
 the excess charge, the suit shall proceed in all respects 
 like all civil suits for damages except that the finding 
 and order of the Commission shall be prima facie evi- 
 dence of the facts therein stated.^^ 
 
 In all cases where a suit in a court is brought to enforce 
 an order of the Commission, the complainant can recover 
 attorney's fees. 
 
 "Robinson v. B. & O. R. R. Co., 222 U. S. 506, 512. 
 "Phillips Co. V. G. T. W. Ry. Co., 195 Fed. 12, 16. 
 "Darnell-Taenzer Lumber Co. v. S. P. Co., 190 Fed. 659, 663. 
 
SECTION 16a 
 
 Rehearings. — This section provides tliat after a de- 
 cision, order, or requirement has been handed down by 
 the Commission in any proceeding, any party thereto 
 may at any time make application for rehearing of the 
 same, or any matter determined therein. It shall be lawful 
 for the Commission in its discretion to grant such a re- 
 hearing if sufficient reason therefor be made to appear. 
 Applications for rehearing shall be governed by such 
 general rules as the Commission may establish. No such 
 application shall excuse any carrier from complying with 
 or obeying any decision, order, or requirement of the 
 Commission, or operate in any manner to stay or post- 
 pone the enforcement thereof, without the special order 
 of the Commission. In case a rehearing is granted, the 
 proceedings thereupon shall conform as much as possible 
 to the proceedings in an original hearing, except as the 
 Commission may otherwise direct. 
 
 If, in its judgment, after the consideration of all facts, 
 including those arising since the former hearing, it shall 
 appear that the original decision, order, or requirement 
 is in any respect unjust or unwarranted, the Commission 
 may change the same. Any decision, order, or require- 
 ment made after such rehearing or changing of the orig- 
 inal determination, shall be subject to the same provisions 
 as an original order. In conjunction with this, read Sec- 
 tion 16a, Eehearing. 
 
 152 
 
SECTION 17 
 
 1. Pbocedukb 
 
 In general. — Section 17 provides that the Commission 
 may conduct its proceedings in such manner as will best 
 conduce to the proper dispatch of business and to the 
 ends of justice. It may from time to time make or amend 
 such general rules or orders as may be requisite for the 
 order and regulation of proceedings before it. Any party 
 may appear before it and be heard in person or by at- 
 torney. 
 
 The Commission has absolute power over its proce- 
 dure. This section, however, should be read in connec- 
 tion with Sections 16 and 16a, which to some extent, as 
 has been noted, more clearly define the Conomission's 
 authority in this respect. Section 16 gives the Commis- 
 sion authority to modify its orders, and Section 16a 
 grants more specific authority concerning rehearings. 
 The Commission has endeavored to simplify its practice 
 and procedure, not permitting technical matters to inter- 
 fere with substantial results. In order that shippers un- 
 skilled in such matters might bring their troubles to the 
 Commission in their own proper persons, the practice 
 rules of the Commission, while not overlooking the defi- 
 nite requirements of the law in respect to filing com- 
 plaints, are intended to relieve complainants, as far as 
 possible, from observance of the more technical rules of 
 pleading. 
 
 The Commission has published rules of procedure. ^ 
 It is necessary for this body to have some kind of system 
 
 "These rules will be found in "Procedure Before the Interstate 
 Commerce Commission." 
 
 153 
 
154 THE ACT TO REGULATE COMMERCE 
 
 in the practice and trial of thousands of cases pending be- 
 fore it. Naturally, some questions have arisen. We will 
 consider briefly the more important ones. 
 
 Complaint. — It is due both to the Commission and to 
 the defendant carrier that a complainant should state 
 seasonably whether he will claim reparation, and that 
 both the Commission and the carrier may be advised of 
 the nature of his claim. Every rule of convenience and 
 of justice requires that where a large number of existing 
 rates are attacked, a statement should be made in gen- 
 eral terms that reparation will be claimed when a deci- 
 sion finally reducing the rates is made. The matter may 
 thus be held in abeyance until the main question has been 
 decided and the parties know whether any reparation will 
 be awarded. 
 
 Upon a complaint alleging undue preference, it was 
 held that the question of the reasonableness per se of 
 rates is automatically imported into a case through the 
 suspension of the tariffs. However, a complaint does not 
 raise the issue that rates are discriminatory when it sim- 
 ply contains a general allegation that the rates of the de- 
 fendant violate Sections 1, 2, and 3 of the Act, and there 
 is no attempt to point out in any particular the character 
 of the discrimination, the locality involved, or any prayer 
 for its correction. If a question of discrimination in 
 rates is not specifically alleged in the complaint, but is 
 actually tried upon the hearing, the Commission may 
 allow an amendment upon such terms as would properly 
 protect the defendants. It cannot, however, decide that 
 question when raised for the first time in the briefs. The 
 remedy of complainants is to file a separate complaint to 
 that specific end. 
 
 While the Commission is extremely liberal in constru- 
 ing the pleadings before it, the statute requires that car- 
 riers shall be notified of the complaint which they are re- 
 
SECTION 17 155 
 
 quired to answer. Though no particular form is insisted 
 upon, there must be a statement of the thing which is 
 claimed to be wrong, sufficiently plain to put the carrier 
 upon its defense.^ 
 
 Therefore, the Commission, fully weighing all of the 
 pertinent facts and testimony adduced, can take judicial 
 cognizance of and make findings upon only such issues as 
 are clearly raised by the complaint. An examination into 
 the specific provisions of the Act, especially into those 
 of Section 13, will make clear to the candid mind that a 
 complaint before the Commission was not intended to be 
 regarded in the same strict and hard light as a complaint 
 in an action at law, but was to be regarded as an appeal 
 to the Government against oppressive, unjust, and illegal 
 action. A shipper may not dismiss his complaint without 
 consent. The fact that he has no interest in the traffic 
 concerned in his complaint does not put him out of court. 
 These and similar provisions indicate that the purpose of 
 Congress in enacting the Act was to establish a body 
 whose function should be to protect the ^public interest, 
 and not merely regard the technical rights of an individ- 
 ual shipper. In this view of the law the Act has been 
 administered by the Commission.^ 
 
 But the Commission is not disposed to try complaints 
 piecemeal. If a complainant desires to secure reparation 
 upon traffic, in respect of which he also seeks reduction 
 of the rate for the future, he may reasonably be required 
 to present his whole case at once. The Commission en- 
 forces in its investigation only the most elementary rules 
 of procedure, requiring merely that the complainant shall 
 set forth concisely an alleged violation of the Act. It is 
 aimed to avoid technical rules that might impede the way 
 to substantial justice, and to determine each case upon 
 
 "U. S. Leather Co. v. S. Ry. Co., 21 1. C. C. 323, 324. 
 •Advances in Eatee— Western Case, 20 I. C. C. 307, 316. 
 
156 THE ACT TO REGULATE COMMERCE 
 
 the merits alone. Obviously, however, it is in the interest 
 of good administration that an entire case should be pre- 
 sented to the Commission and to the defendants. 
 
 Cases are ordinarily assigned for hearing at some 
 point convenient to the complainant; but each heating 
 involves attendance by a member of the Commission or 
 an examiner, and of the defendant's counsel and witness 
 at the place assigned. If, after an order for the future 
 is secured, the complainant may institute another pro- 
 ceeding for reparation on past shipments, a second hear- 
 ing becomes necessary, which may involve an expenditure 
 of public funds and a hardship upon the defendants quite 
 out of proportion to the amount sought to be recovered. 
 Moreover, it does not follow that because the Commission 
 has found a rate unreasonable and established a lower 
 rate for the future, the former rate was unreasonable at 
 aU times in the past. In such a proceeding as this, there- 
 fore, a second and independent investigation would be 
 unavoidable. 
 
 Notice of complaint. — Section 13 of the Act requires 
 the Commission, when a complaint stating the facts is 
 filed, to forward the same "to such common carrier, who 
 shall be called upon to satisfy the complaint or to answer 
 the same in writing within a reasonable time to be speci- 
 fied by the Commission. ' ' Notice should be given only to 
 the party immediately interested and not to those re- 
 motely concerned. Since full publicity, however, attends 
 every step of aU proceedings before the Commission, it 
 must be assumed that parties interested will take notice 
 of what is going on. 
 
 Amending complaint. — ^Where a complaint seeking 
 reparation for certain claims is filed before the expira- 
 tion of the limitation period applicable to such claims, 
 and, upon motion of complainant, is dismissed without 
 prejudice, the Commission may in its discretion reinstate 
 
SECTION 17 157 
 
 said original petition by a nunc pro tunc order as of date 
 of the filing of the complaint in the first place. It can- 
 not, however, reinstate such a complaint when the same 
 has been amended to include claims not embraced in the 
 original complaint, which are at the time of the motion 
 for reinstatement barred by the Statute of Limitations. 
 The Commission cannot sanction a practice permittiag 
 the revival of claims barred by the statute by subse- 
 quently attaching them to other claims, presented within 
 the prescribed period. This is true despite any promises 
 on the part of the defendant carriers that they will not 
 take advantage of the Statute of Limitations. The Com- 
 mission has no jurisdiction to deal with complaints for 
 reparation in any way, unless they are filed with or pre- 
 sented to it within the time provided by law, and do not 
 have the powers of a court of equity to relieve from hard- 
 ships resulting from improvident arrangements or agree- 
 ments between the parties. 
 
 Hearing. — While the Act does not presume to cast the 
 burden of proof entirely upon the complainant to estab- 
 lish the unreasonableness of a rate complained of, as 
 would be the case in a court of law, nevertheless a com- 
 plainant is not relieved of all responsibility as to his case 
 upon the mere filing of a complaint. Where, after due 
 notification, he appears neither in person nor by counsel 
 at the hearing, and his application is primarily one for 
 reparation, his complaint must be dismissed. 
 
 Rehearing. — When full opportunity for hearing has 
 been accorded, parties must show as ground for a re- 
 hearing that the evidence which they now offer either 
 could not or ought not to have been previously intro- 
 duced ; also that this evidence, if admitted, will probably 
 lead to a reversal. It is no hardship to require carriers, 
 in the trial of their cases before the Commission, to ob- 
 serve to a very moderate degree the same rules that 
 
158 THE ACT TO REGULATE COMMERCE 
 
 would obtain in a trial at law. Whenever the Commis- 
 sion is convinced that its order works substantial injus- 
 tice, it will unhesitatingly set aside that order. It can- 
 not, however, continually retry cases upon the mere 
 statement of the carrier that it desires to introduce some 
 further testimony, or that it believes that the decision 
 of the Commission is wrong. 
 
 The rules regarding rehearing should be considered in 
 connection Avith Section 16a, already referred to. 
 
 Orders of the Commission. — The Commission is an ad- 
 ministrative body. The rates, regulations, and practices 
 that it establishes within its jurisdiction become fixed 
 rules of action. From time to time it may be necessary 
 to change these rulings as varying conditions require, 
 but this should never be done except upon due notice to 
 the public, which is affected by them. It would, of course, 
 be altogether iatolerable if the change could be made re- 
 troactive.* 
 
 But an order of the Commission for the payment of 
 money does not have the effect of an order, decree, or 
 judgment of a court; it is not enforceable by process, nor 
 does it become a lien upon the property of the defendant. 
 
 The Commission may likewise modify its orders as it 
 sees fit. 
 
 *Nebr.-Iowa Grain Co. v. U. P. R. R. Co., 15 I. C. C. 90, 93. 
 
SECTION 18 
 
 Salaries of Commission. — Section 18 provides that the 
 Commission shall appoint a secretary, who shall receive 
 an annual salary of $5,000. The Commission also has 
 authority to employ and fix the compensation of such 
 other employes as it may find necessary for the proper 
 performance of its duties. Until otherwise provided by 
 law, the Commission may hire suitable offices for its use, 
 and shall have authority to procure all necessary office 
 supplies. Witnesses summoned before the Commission 
 shall be paid the same fees and mileage that are paid to 
 witnesses in the courts of the United States. 
 
 All of the expenses of the Commission, including all 
 necessary expenses for transportation incurred by the 
 Commissioners, or by their employes under their orders 
 in making any investigation, or upon official business in 
 any place other than in the city of Washington, shall be 
 allowed and paid on the presentation of itemized vouch- 
 ers approved by the Chairman of the Commission. While 
 Section 18 also fixes the salaries of the Commissioners, it 
 has been superseded in this respect by Section 24, to 
 which the reader should refer. 
 
 159 
 
SECTION 19 
 
 Office of the Commission. — Section 19 provides that the 
 principal office of the Commission shall be in the city of 
 Washington, where its general sessions shall be held ; but 
 whenever the convenience of the public or the parties 
 may be promoted, or delay or expense prevented thereby, 
 the Commission may hold special sessions in any part of 
 the United States.^ It may, by one or more of the Com- 
 missioners, prosecute any inquiry necessary to its duties, 
 in any part of the United States, into any matter or ques- 
 tion of fact pertaining to the business of any common 
 carrier subject to the provision of this Act. 
 
 Owing to the enormous amount of work now imposed 
 upon the Commission, hearings, particularly away from 
 the city of Washington, are conducted by examiners, who 
 are especially appointed to make investigations and to 
 hear testimony. 
 
 'As a matter of fact, hearings are constantly being held in all 
 parts of the country. 
 
 160 
 
SECTION 20 
 L Eepobts 
 
 Section 20 provides that the Commission is authorized 
 to require annual reports from all common carriers sub- 
 ject to the Act, and from the owners of all railroads en- 
 gaged in interstate commerce as defined in the Act. It 
 has power, also, to prescribe the manner in which such 
 reports shaU be made, and to require from such carriers 
 specific answers to aU questions upon which the Commis- 
 sion may need information. Such annual reports must 
 show in detail the amount of capital stock issued, the 
 amounts paid therefor, and the manner of payment for 
 the same; the dividends paid, the surplus fund, if any, 
 and the number of stockholders ; the funded and floating 
 debts, and the interest paid thereon ; the cost and value 
 of the carrier's property, franchises, and equipments; 
 the number of employes and the salaries paid each class ; 
 the accidents to passengers, employes, and other per- 
 sons, and causes thereof ; the amounts expended for im- 
 provements each year, how expended, and the character 
 of such improvements; the earnings and receipts from 
 each branch of business and from all sources ; the operat- 
 ing and other expenses ; the balances of profit and loss ; 
 and a complete exhibit of the financial operations of the 
 carrier each year, including an annual balance sheet. 
 
 Such reports shall also contain such information in re- 
 lation to rates or regulations concerning fares or 
 freights, agreements, arrangements, or contracts affect- 
 ing the same as the Commission may require; and the 
 Commission may, in its discretion, for the purpose of en- 
 
 161 
 
162 THE ACT TO REGULATE COMMERCE 
 
 abling it the better to carry out the purposes of the Act, 
 prescribe a period of time within which all common car- 
 riers subject to the provisions of this Act shall have, 
 as near as may be, a uniform system of accounts, and the 
 manner in which such accounts shall be kept. The Com- 
 mission has done this and all carriers now operate under 
 uniform accounting regulations. 
 
 Said detailed reports must contain all the required 
 statistics for the period of the preceding twelve months, 
 and must be made out under oath and filed with the Com- 
 mission at its office in Washington within three months 
 after the close of the year for which the report is made, 
 unless additional time be granted in any case by the Com- 
 mission. The Commission is also given authority to re- 
 quire carriers to file monthly reports of earnings and ex- 
 penses, and to file periodical or special, or both periodical 
 and special, reports concerning any matters about which 
 the Commission is authorized or required by this or any 
 other law to inquire or to keep itself informed, or which 
 it is required to enforce ; and, whenever the Commission 
 so requires, such periodical or special reports shall be 
 under oath. A penalty of $100 a day accrues for failure 
 to file these reports. 
 
 The Commission is also given power to prescribe the 
 forms of any and all accounts, records, and memoranda 
 to be kept by carriers subject to the Act, including the 
 accounts, records, and memoranda of the movement of 
 traffic, as well as the receipts and expenditures of 
 moneys. The Commission has at all times access to all 
 accounts, records, and memoranda kept by carriers. It 
 is unlawful for such carriers to keep any other accounts, 
 records, or memoranda than those prescribed or ap- 
 proved by the Commission. The latter may employ spe- 
 cial agents or examiners, who. have authority under the 
 order of the Commission to inspect and examine any and 
 
SECTION 20 163 
 
 all accounts, records, and memoranda kept by such car- 
 riers. The penalty is $500 a day for refusal to permit 
 the Commission to inspect the records. 
 
 Any person who willfully makes any false entry in the 
 accounts of any book of accounts or in any record or 
 memoranda kept by a carrier, or who willfully destroys, 
 mutilates, alters, or by any other means or device falsi- 
 fies the record of any such account, record, or memo- 
 randa, or who willfully neglects or fails to make full, 
 true, and correct entries, in such accounts, records, or 
 memoranda, of all facts and transactions appertaining to 
 the carrier's business, or who keeps any other accounts, 
 records, or memoranda than those prescribed or ap- 
 proved by the Commission, is guilty of a misdemeanor. 
 The offender is subject, upon conviction in any court of 
 the United States of competent jurisdiction, to a fine of 
 not less than $1,000 and not more than $5,000, or to im- 
 prisonment for a term not less than one year and not 
 more than three years, or to both such fine and imprison- 
 ment. 
 
 Section 20 further provides that any examiner who 
 divulges any fact or information which may come to his 
 knowledge during the course of such examination, except 
 iu so far as he may be directed by the Commission or by 
 a court or judge thereof, shall be subject, upon conviction 
 in any court of the United States of competent jurisdic- 
 tion, to a fine of not more than $5,000, or imprisonment 
 for a term not exceeding two years, or both. 
 
 In passing Section 20 of the Act, giving the Commis- 
 sion authority to prescribe an accounting system and to 
 require reports of carriers covering both interstate and 
 intrastate business. Congress did not exceed its power 
 under the commerce clause of the Constitution.^ 
 
 'I. C. C. V. Goodrich Co., 224 U. S. 194, 214; 32 Sup. Ct. 436; 56 L. 
 Ed. 729. 
 
IH THE ACT TO REGULATE COMMERCE 
 
 Under Section 20 the Commission has power to require 
 the carriers engaged in interstate commerce to make 
 monthly reports of instances of service in excess of the 
 time allowed, provided a separate form of oath is ac- 
 cepted in lieu of such reports in cases where no employe 
 has been employed in excess of the time named in the Act. 
 An order of the Commission, under the Act as amended, 
 requiring the secretary or similar officer of carriers en- 
 gaged in interstate commerce to make monthly reports 
 of violations of the restrictions as to hours of service of 
 employes, is not in violation of the fourth and fifth 
 amendments of the Constitution relating to unreasonable 
 search and seizure and self -crimination. It merely au- 
 thorizes the Commission to require reports from com- 
 mon carriers and owners engaged in interstate commerce. 
 In the absence of such an order by the Commission, man- 
 damus will not lie to compel carriers to make such re- 
 ports. 
 
 Under Section 20 the Commission is also authorized to 
 require reports from and to prescribe systems of book- 
 keeping and accoxmting for steamship companies operat- 
 ing on the Great Lakes. It has authority, however, only 
 with respect to interstate business carried on under a 
 common arrangement with rail carriers, and not with re- 
 spect to port-to-port interstate or port-to-port intrastate 
 business of such carriers.^ 
 
 Neither does the clause in Section 20 declaring it un- 
 lawful for carriers engaged in interstate commerce to 
 keep any accounts, records, or memoranda other than 
 those prescribed by the Interstate Conunerce Commis- 
 sion, prevent the states from prescribing additions to the 
 system of bookkeeping fixed by the Interstate Commerce 
 Commission so as to complete the information necessary 
 
 'Goodrich Transit Co. v. I. C. C, 190 Fed. 943, 958, 966. 
 
SECTION 20 165 
 
 for the regulating of intrastate rates, for the clause re- 
 fers only to interstate conunerce.^ 
 
 Very often the accounting officers do not foUow the 
 strict rules of the Commission. It is important that this 
 be done in order that uniform accoimts be had. 
 
 Accounting officers understand the true functions of accounts 
 and realize their importance in determining the correct eco- 
 nomic condition of the transportation properties with which 
 they are affiliated. Their instincts and training are such as 
 naturally to lead them to keep their accounts as they should be 
 kept. They would not have the confidence of their superior offi- 
 cers if this were not the case. But in many instances the ac- 
 counting officers of carriers have not been left free to follow 
 their natural inclinations in this regard. Irrespective, however, 
 of the influences brought to bear upon an accounting officer to 
 turn him from his true course as an accountant and from his 
 duty, under the law, of keeping the accounts in accordance vdth 
 the system prescribed by the Commission, it is nevertheless his 
 hand, or the hand of someone immediately under his authority, 
 that makes the wrongful record and it is the accountant, there- 
 fore, to whom the Commission must look in the first instance for 
 the proper carrying out of its rules and regulations. Under our 
 regulations and prescribed form, the oath of the accounting offi- 
 cer must be attached to the annual report of the carrier to the 
 Commission, together with that of the executive ; and, from the 
 necessities of the case, it is the accounting officer who is imme- 
 diately responsible and whom the Commission wiU first hold re- 
 sponsible when it becomes necessary to invoke the penalties of 
 law; but we shall not hesitate to call to account with even 
 greater severity anyone above the accounting officer in author- 
 ity who may share in the responsibility for any violations of the 
 accounting rules and regulations which have been prescribed for 
 the use of the carriers that are subject to the Act.* 
 
 It is unnecessary to emphasize the necessity and im- 
 portance of carriers' statistical reports that will be uni- 
 form and truly reflect their condition. Eecent years have 
 witnessed the exposure of glaring instances of the finan- 
 cial wrecldng of transportation agencies by those in posi- 
 
 •R. B. Com. of Tex. v. P. T. & P. Ey. Co. (Tex., 1911), 140 S. W. 
 829, 835. 
 
 •St. Paul & Puget Sound Accounts, 29 I. C. C. 508, 518. 
 
166 THE ACT TO REGULATE COMMERCE 
 
 tions of authority. In many instances the application of 
 correct accounting rules and principles, with proper 
 knowledge on the part of stockholders and the public of 
 the conditions thus reflected, would have gone far to 
 avoid such consequences.'' 
 
 In a tjrpical case, defendant contended that Section 20 
 of the Interstate Commerce Act, in conferring on the 
 Commission power to prescribe the form of accounts, 
 records, and memoranda to be kept by carriers, recog- 
 nizes a distinction between the form and the substance ; 
 and that, while the Commission, to obtain full and ac- 
 curate information concerning the affairs of each cor- 
 poration, must have power to require reports, schedules, 
 and accounts necessary to show its true financial condi- 
 tion, yet the grant must, by fair interpretation and in 
 order not to amount to an unconstitutional delegation of 
 legislative power, stop short of the point where the regu- 
 lation in its essence goes not to the form but to the sub- 
 stance and involves interference with the internal affairs 
 of the corporation. It was held that no such distinction 
 between form and substance is admissible with respect 
 to the declared object of standardizing railroad accounts 
 and obtaining therefrom full and accurate information 
 concerning the affairs of the respective corporations. In 
 order that accounts may be standardized there must be 
 uniformity. So far as regulations for uniformity control 
 or tend to control the conduct of the cari'ier in its capac- 
 ity as a public servant engaged in interstate commerce, 
 they are within the authority constitutionally conferred 
 by Congress upon the Commission. There is no direct 
 interference with the internal affairs of the corporation ; 
 and if any such interference indirectly results, it is only 
 
 •St. Paiil & Puget Sound Accounts, 29 I. C. C. 508, 517. 
 
SECTION 20 167 
 
 such as is incidental to the lawful control of the carrier 
 by the Federal Government.® 
 
 2. The Carmack Amendment 
 
 In general. — Section 20 also contains what is known as 
 the Carmack Amendment, which makes the initial car- 
 rier liable for loss or damage occurring to a shipment 
 while off its raUs in the possession of a connecting car- 
 rier. This provision of the Act is so important that we 
 shall quote it verbatim. 
 
 Any common carrier, railroad, or transportation company re- 
 ceiving property for transportation from a point in one State 
 to a point in another State shall issue a receipt or bill of lading 
 therefor and shaU be liable to the lawful holder thereof for any 
 loss, damage, or injury to such property caused by it or by any 
 common carrier, railroad, or transportation company to which 
 such property may be delivered or over whose line or lines such 
 property may pass, and no contract, receipt, rule, or regulation 
 shaU exempt such common carrier, railroad, or transportation 
 company from the liability hereby imposed; provided. That 
 nothing in this section shall deprive any holder of such receipt 
 or bill of lading of any remedy or right of action which he has 
 under existing law. 
 
 That the common carrier, railroad, or transportation com- 
 pany issuing such receipt or bill of lading shall be entitled to 
 recover from the common carrier, railroad, or transportation 
 company on whose line the loss, damage, or injury shall have 
 been sustained the amount of such loss, damage, or injury as it 
 may be required to pay to the owners of such property, as may 
 be evidenced by any receipt, judgment, or transcript thereof. 
 
 This provision has completely changed the method of 
 proving claims against carriers, which had existed before 
 its passage. Formerly, if a shipper presented a claim 
 against a railroad, in many of the states he had to prove 
 on which connecting line the loss or damage occurred. 
 
 •K. C. S. Ry. Co, V. U. S., 34 Sup. Ct. 125, 130; 231 U. S. 423; 58 
 L. Ed. 
 
168 THE ACT TO REGULATE COMMERCE 
 
 In many instances this was impracticable, and resiilted 
 in considerable hardship. In 1906, therefore, Congress 
 passed this section, known as the Carmack Amendment. 
 This malies the initial carrier liable for the loss, no mat- 
 ter where it occurs. 
 
 The Carmack Amendment, requiring carriers in inter- 
 state commerce, as a condition of continuing in that 
 traffic, to obligate themselves to carry freight to the point 
 of destination, using the lines of the connecting carriers 
 as their own agencies, is not beyond the scope of the 
 power of regulation. It is, therefore, not unconstitu- 
 tional as denying the right of contract, since the right to 
 freedom of contract is not unlimited, and the regulation 
 imposed is not unwarranted abridgment thereof. It is 
 merely a denial of such right to the extent of forbidding 
 or regulating every contract which is reasonably calcu- 
 lated to affect injuriously the public interest.'^ 
 
 The Carmack Amendment is not in violation of the 
 third amendment of the Constitution in taking the prop- 
 erty of the initial carrier to pay the debt of an independ- 
 ent connecting carrier whose negligence may have been 
 the sole cause of the loss, since the resulting liability of 
 the initial carrier is that of a principal for the negligence 
 of its own agent.^ 
 
 Considerable doubt was expressed as to the constitu- 
 tionality of that part which provides for contribution 
 from connecting carriers. It is now well settled, how- 
 ever, that the portion of the Carmack Amendment pro- 
 viding that the carriers issuing the receipt or bill of lad- 
 ing shall be entitled to recover from the carrier on whose 
 line the loss or damage occurs, "the amount of such loss, 
 damage, or injury as it may be required to pay to the 
 owners of such property, as may be evidenced by any 
 
 •A. C. L. R. R. Co. V. Riverside Mills, 219 U. S. 186. 
 •A. C. L. R. R. Co. V. Riverside Mills, 219 U. S, 186. 
 
SECTION 20 169 
 
 receipt, judgment or transcript thereof," is not uncon- 
 stitutional; for it makes the receipt, judgment, or tran- 
 script only prima facie or presumptive, and not conclu- 
 sive, evidence.^ 
 
 Jurisdiction of Commission.— Claims for loss and dam- 
 age under the Carmack Amendment are not within the 
 jurisdiction of the Interstate Commerce Commission; 
 such suits can be prosecuted only in a court. 
 
 Jurisdiction of state courts. — In a suit against an in- 
 itial carrier under the Carmack Amendment for a fail- 
 ure to deliver goods at destination, a state court has ju- 
 risdiction, since the act complained of is not a violation 
 of the original Act of 1887, and the Interstate Commerce 
 Commission does not, therefore, have exclusive jurisdic- 
 tion under Section 9 of the present Act.^" The Carmack 
 Amendment, making the initial carrier liable for loss or 
 damage occurring on its own line or on that of a connect- 
 ing carrier, will be recognized and enforced by the state 
 courts.^^ So a state court has jurisdiction under the Car- 
 mack Amendment to entertain an action against an ini- 
 tial carrier for damages caused by a connecting carrier 
 in failing to carry an interstate shipment of peaches with 
 reasonable despatch, and to keep the same properly 
 iced.^^ 
 
 Sections 8 and 9 of the Interstate Commerce Act de- 
 clare a liability for damages which result where the com- 
 mon carrier "shall do, cause to be done, or permit to be 
 done, any act, matter, or thing in this Act prohibited or 
 declared to be unlawful or shall omit to do any act, mat- 
 ter, or thing in this Act required." It was held that the 
 liability created by the Carmack Amendment to the Hep- 
 
 •C. of Ga. Ry. Co. v. Sims, 169 Ala. 295, 301; 53 So. 826. 
 "G. H. & S. A. Ry. Co. v. Wallace, 223 U. S. 481. 
 "C. of Ga. Ry. v. Sims, 169 Ala. 295, 300; 53 So. 826. 
 "St. L. & S. F. R. R. Co. V. Heyser (Ark., 1910), 130 S, W. 562, 564, 
 
170 THE ACT TO REGULATE COMMERCE 
 
 burn law, making the initial carrier of an interstate sliip- 
 ment responsible for loss or damage occurring on the line 
 of a connecting carrier, is not governed by said Sections 
 8 and 9, so as to give the Interstate Commerce Commis- 
 sion and the federal courts exclusive jurisdiction, but 
 since the liability under the Carmack Amendment was 
 not created by the Interstate Commerce Act, state courts 
 have at least concurrent jurisdiction with the Commis- 
 sion and the federal courts.^^ 
 
 Liability of initial carrier. — Under the Carmack 
 Amendment the initial carrier is responsible for any loss 
 or damage which occurs on a line of any other carrier. 
 No carrier can limit its liability so as to avoid this obli- 
 gation. However, inasmuch as the Carmack Amendment 
 only applies to transportation from one state to another, 
 the initial carrier in the United States is not liable for a 
 loss which occurs on the ocean, on a shipment destined 
 to a foreign country. Thus, suppose a shipper in San 
 Francisco was to ship goods to Cuba via New York. The 
 originating carrier would be liable for any loss which 
 occurred to the shipment to the port of New York; but 
 after it was transshipped there and put on the steamer it 
 would not be responsible for any loss or damage that oc- 
 curred while in the possession of that carrier, because the 
 shipment would then be destined to a point not in the 
 United States. On a shipment from Pittsburgh to 
 San Francisco by way of New York, even if the shipment 
 was transshipped at New York, and damaged whUe in 
 the possession of the water carrier, the originating car- 
 rier would still be liable, because the shipment would be 
 destined to a point in the United States. 
 
 Limitation of liability. — ^It is important to note that 
 under the Carmack Amendment the carrier has the right, 
 however, to restrict its liability when such restriction of 
 
 "St. L. & S. F. E. E. Co. V. Heyser (Ark., 1910), 130 S. W. 662, 565. 
 
SECTION 20 171 
 
 liability is a rate based on value. So, the valuations de- 
 clared or agreed upon, as evidenced by the contract of 
 shipment upon which the published rate is applied, must 
 be conclusive in an action to recover a greater sum for 
 loss or damage." 
 
 When a shipper delivers a package for shipment and 
 declares a value, either upon request or voluntarily, and 
 the carrier makes a rate accordingly, the shipper, in case 
 of loss or damage, is estopped from recovering any 
 greater amount.^^ 
 
 The Carmack Amendment does not forbid a limitation 
 of liability in case of loss or damage to a valuation agreed 
 upon for the purpose of determining which of two alter- 
 native lawful rates shall apply to a particular shipment. 
 
 In an interstate shipment of bulls and cows, the ship- 
 ping receipt stated that the carrier did not haul these 
 animals for the lower rate specified as applying, except 
 upon valuation of $30 and $20 per head for the bulls and 
 cows, respectively, and thereafter recited that the ship- 
 per represented the value as not exceeding these sums. 
 In the tariffs, a higher rate was specified, where the lia- 
 bility was unlimited. It was held that the shipper, hav- 
 ing accepted this receipt, could not recover in excess of 
 the sums limited for loss of the stock, notwithstanding 
 the provision of the Carmack Amendment relating to ex- 
 emption of liability. ^^ 
 
 Under the law it is a duty of shippers of property of 
 more than ordinary value to bUl the same at its true 
 value, in order that the legal rate may be applied. In the 
 case of the shipper's declaring a false value to secure a 
 reduced rate, one of the penalties under a form of receipt 
 basing the rate on valuation is an estoppel. By this he 
 
 »K. C. S. R. R. Co. V. Carl, 33 Sup. Ct. 391, 395; 227 U. S. 639. 
 
 "K. C. S. R. R. Co. V. Carl, 33 Sup. Ct. 391. 
 
 "M. K. & T. R. R. Co. V. Harriman Bros., 227 U. S. 657. 
 
il2 THE ACT TO REGULATE COJIMERCE 
 
 is precluded, in case of loss or damage, from denying the 
 correctness of a value so given.^'^ 
 
 Plaintiff shipped a carload of pig tin, consisting of 320 
 pigs of substantially the same size. Under the published 
 interstate rates, 23 cents per 100 pounds was fixed for 
 carload lots only, "released to valuation of $100 per ton 
 of 2,000 pounds, to be shown on bUls of lading and ship- 
 per's invoice," and 30 cents per 100 pounds without any 
 limitation of liability. Plaintiff signed a bill of lading 
 upon which was stamped the statement that in case of 
 loss or damage to the property therein described he 
 would not assert claim against the carrier on a higher 
 basis of value than $100 per ton. Forty of the pigs were 
 lost in transit. It was held that the limited liability ap- 
 plied to each part of the cargo, and plaintiff was there- 
 fore not entitled to recover the full value of the tin lost 
 so long as it did not exceed the value of the entire load, 
 but was only entitled to recover at the rate of $100 per 
 ton on the actual weight lost.^^ 
 
 The valuation declared or agreed upon, as evidenced 
 by the contract of shipment upon which the published 
 tariff rate is applied, is conclusive between parties.^* 
 But where a carrier's agent is not authorized to accept 
 shipments under the common-law liability and is author- 
 ized to accept them only for a limited liability under a 
 higher rate, the contract limiting liability is invalid even 
 though the shipper mates no demand to ship under the 
 common-law liability.^" 
 
 - A bill of lading of an interstate shipment contained the 
 condition that the amount of the loss or damage for 
 
 "Express Bates, Practices, Accounts, and Revenues, 28 I. C. C. 131, 
 138 
 
 "■United Lead Co. v. L. V. R. R. Co. (N. Y., 1913), 141 N. Y. S. 
 310. 
 
 "United Lead Co. v. L. V. R. R. Co. (N. Y., 1913), 141 N. Y. S. 
 310. 
 
 "C. C. C. & St. L. Ry. Co. v. Hayes (Ind., 1913), 102 N. E. 34, 41. 
 
SECTION 20 173 
 
 which any carrier was liable should be computed on the 
 basis of the value of the property (being the bona fide 
 price, if any, to the consignee). It was held that the pro- 
 vision was not invalid, under the Carmack Amendment 
 to the Interstate Commerce Act.^^ 
 
 Liability for negligence. — ^However, while the carrier 
 has the right to publish rates based on value and restrict 
 its liability to the valuation so imposed, it cannot release 
 its liability for a loss caused through its own negligence, 
 because such provisions are void under the Carmack 
 Amendment. So provisions forbidding exemption of lia- 
 bility are a statutory declaration that a contract of ex- 
 emption from liability for negligence is against public 
 policy and void.^^ 
 
 An agreement to release a carrier for part of a loss due 
 to negligence is no more valid, under the Carmack 
 Amendment, than one whereby there is complete exemp- 
 tion. Neither is such a contract any more valid because 
 it rests upon a consideration than if it were without con- 
 sideration.^^ 
 
 But by the provision of the Carmack Amendment the 
 liability imposed on the carrier for loss or damage in in- 
 terstate shipments is the liability imposed by the common 
 law upon the common carrier, and may be limited or 
 qualified by special contract with the shipper, provided 
 the limitation or qualification be just and reasonable, and 
 does not exempt from loss or responsibility due to negli- 
 gence.** 
 
 So in consideration of a lower rate the shipper may 
 agree that the carrier's liability shall be limited to a cer- 
 tain amount in case of loss or damage to the shipment. 
 
 "Coleman v. N. Y. N. H. & H. R. E. Co. (Mass., 1913), 102 N. E. 
 92, 94. 
 
 "K. C. S. E. E. Co. V. Carl, 227 U. S. 639. 
 
 =K. C. S. R. R. Co. V. Carl, 83 Sup. Ct. 391, 394; 227 U. S. 639. 
 
 "M. K. & T. R. R. Co. V. Harriman Bros., 33 Sup. Ct. 397, 401; 227 
 U. S. 657. 
 
174 THE ACT TO EEGULATE COMMERCE 
 
 The provisions of the Interstate Commerce Act do not 
 preclude the shipper, after paying the legal rates, from 
 receiving or recovering for injuries to the property 
 transported caused by the carrier's negligence.^' 
 
 Notice of loss. — Very often bills of lading contain pro- 
 visions that notice of loss or damage to a shipment must 
 be presented to the carrier within a specified time. Under 
 the Carmack Amendment, making the initial carrier of 
 an interstate shipment liable for loss or damage caused 
 by itself or connecting carriers, a provision in the ship- 
 ping contract requiring the shipper to present a claim in 
 writing for loss or damage to the carrier, at the point 
 of shipment or delivery, within four months after de- 
 livery, is not invalid.^® 
 
 Under the Interstate Commerce Act, which is control- 
 ling upon a state court in determining questions of liabil- 
 ity properly arising out of interstate shipments, the 
 courts will uphold the validity of a provision in a live- 
 stock contract or bill of lading to the effect that, as a con- 
 dition precedent to a recovery for any damages for delay, 
 loss, or injury to live stock covered by the contract, the 
 shipper will give notice in writing of the claim, before 
 said stock is removed from the point of shipment or the 
 place of destination, and before such stock mingles with 
 other stock. Such notice is to be given to some general 
 officer, to the nearest station agent, to the agent at des- 
 tination, or to some general officer of the delivering line, 
 and is to be served within one day after delivery of such 
 stock at destination.^'^ 
 
 The Carmack Amendment does not prohibit an agree- 
 ment providing a reasonable time within which the ship- 
 per must present his claim or give notice of. claim for 
 
 "Ore. B. & N. Co. v. Thisler (Kans., 1913), 133 P. 539, 539. 
 
 »A. C. L. E. R. Co. V. Ward (Ala., 1912), 58 So. 677, 678. 
 
 "St. L. & S. F. R. E. Co. V. Zickafoose (Okla., 1313), 135 P. 406, 407. 
 
SECTION 20 175 
 
 loss or damage, or the carrier shall not be liable. Like- 
 wise, nothing in the Carmack Amendment invalidates a 
 provision in a bill of lading of an interstate shipment re- 
 quiring claims for loss or damage to be made in writing 
 to the carrier at the point of delivery or at the point of 
 origin within four months after delivery of the property, 
 or in case of failure to make delivery within four months 
 after a reasonable time for delivery has elapsed.^^ This 
 is included in the third section of the Uniform Bill of 
 Lading. However, since the Carmack Amendment abol- 
 ishes the stipulation for separate liability of connecting 
 carriers of interstate freight, notice to a connecting car- 
 rier of loss or damage to live stock is notice to the initial 
 carrier.^® 
 
 In 1915 the Cummins Amendment to the Carmack 
 Amendment became effective. At the time of revision 
 of this treatise, there has been no authoritative interpre- 
 tation of this amendment either by the Commission or by 
 the courts, so that nothing definite can be added to the 
 provisions of the amendment itself, which will be found 
 between pages 46 and 47 of the Act. 
 
 "Joseph V. C. B. & Q. R. R. Co. (Mo., 1913), 167 S. W. 837, 838. 
 -C. R. I. & G. Ry. Co. v. Linger (Tex., 1913), 156 S. W. 298, 299, 
 
SECTION 21 
 
 Report by Commission. — Section 21 provides that the 
 Commission shall, on or before the first day of Decem- 
 ber in each year, make a report, which shall be trans- 
 mitted to Congress, and copies of which shall be distrib- 
 uted, as are the other reports, to Congress. This report 
 should contain such information and data collected by 
 the Commission as may be considered of value in the de- 
 termination of questions connected with the regulation 
 of commerce, such recommendations regarding addi- 
 tional legislation relating thereto as the Commission may 
 deem necessary, and the names and compensation of the 
 persons employed by said Commission. The annual re- 
 port of the Commission is a very instructive publication,, 
 which can be secured from the Superintendent of Docu- 
 ments a reasonable time after it is transmitted to Con- 
 gress. 
 
 The annual report of the Commission shows more than 
 any other source of information the wide scope of the 
 Commission's authority as now constituted. 
 
 176 
 
SECTION 22 
 1. Reduced Eates 
 
 Section 22 provides that no provision of the Act shall 
 prevent the carriage, storage, or handling of property 
 free or at reduced rates for the United States, state, or 
 municipal governments, or for charitable purposes, or to 
 or from fairs and expositions for exhibition thereat, or 
 the free carriage of destitute and homeless persons trans- 
 ported by charitable societies, and the necessary agents 
 employed in such transportation, or the issuance of mile- 
 age, excursion, or commutation passenger tickets. The 
 railroad is also authorized to give reduced rates to min- 
 isters of religion, or to municipal governments for the 
 transportation of indigent persons, inmates of national 
 homes or state homes for disabled volunteer soldiers and 
 inmates of soldiers' and sailors' orphan homes, including 
 those returning home after discharge, under arrange- 
 ments with the boards of managers of such homes. 
 
 The railroad is likewise authorized to give free car- 
 riage to its own officers and employes, or the officers of 
 any railroad company with which it exchanges passes or 
 tickets. It also permits the issuance of joint interchange- 
 able 5,G00-mile tickets, with special privileges as to the 
 amount of free baggage that may be carried under mile- 
 age tickets of 1,000 miles or more. But before any car- 
 rier may issue any such joint interchangeable mileage 
 tickets with special privileges, it must file with the Inter- 
 state Commerce Commission copies of the joint tariffs 
 of rates, fares, or charges on which such joint inter- 
 changeable mileage tickets are to be based, together with 
 
 177 
 
178 THE ACT TO REGULATE COMMERCE 
 
 specifications of the amount of free baggage permitted 
 to be carried under such tickets, in the same manner as 
 common carriers are required to do with regard to other 
 joint rates by Section 6 of the Act ; and all the provisions 
 of Section 6 relating to joint rates, fares, and charges 
 must be observed by such carriers and enforced by the 
 Interstate Commerce Commission as fully with regard 
 to such joint interchangeable mileage tickets as with re- 
 gard to other joint rates, fares, and charges referred to 
 in that section. 
 
 It is unlawful for any carrier that has issued any such 
 joint interchangeable mileage tickets to demand, collect, 
 or receive from any person or persons a greater or leSs 
 compensation for transportation of persons or baggage 
 under such joint interchangeable mileage tickets than 
 that required by the rate, fare, or charge specified in the 
 copies of the joint tariff of rates, fares, or charges filed 
 with the Commission in force at the time. 
 
 Charitable institutions. — ^A charitable institution, as 
 the term bears upon the right of carriers to issue free 
 transportation, is one that is administered in the public 
 interest, and not for private gain. The definition in- 
 cludes hospitals, almshouses, orphanages, asylums, and 
 missionary societies. Such an institution does not neces- 
 sarily lose its charitable character from the fact that it is 
 under the management of a particular denomination or 
 sect, or because a charge is collected from some or all of 
 those who enjoy its privileges. It is necessary only that 
 it be conducted in the public interest and not for private 
 gain.^ 
 
 Clergymen acting as editors of officially recognized 
 church papers, as college presidents or professors, as 
 financial agents for a church or other religious or charita- 
 ble institution (including educational institutions under 
 
 'Passes to Clergymen and Others, 15 I. C. C. 45, 46. 
 
SECTION 22 179 
 
 church government), as workers in Christian Temper- 
 ance or Y. M, C. A. work, and as brothers of religious 
 orders, are included among those who receive reduced- 
 rate transportation. Sisters of charity devoting their 
 entire time to religious work and who habitually wear a 
 garb distinctive of their order are not excluded from the 
 privilege of receiving reduced-rate transportation. A 
 clergyman does not lose his ministerial standing by rea- 
 son of the fact that he leaves the pastorate for some 
 ■ other field of religious activity. 
 
 Returned shipments. — ^Very often the carriers publish 
 low rates on returned shipments or on second-hand or 
 returned goods. The Commission instituted an inquiry 
 into the legality of tariff rules providing for the applica- 
 tion of reduced rates on such returned shipments. Under 
 some of the tariffs these reduced rates applied during 
 any time up to four years. It was held that returned- 
 shipment rates in general should be disapproved, but 
 that reduced rates for the return of freight which has 
 been refused by the consignee at destination may prop- 
 erly be made. In the latter case, the return movement is 
 practically a continuation of the going movement and 
 may for that reason be accorded lower than standard 
 rates. Goods in closed packages may lawfully enjoy re- 
 turn-shipment rates if tendered to the carrier within ten 
 days following delivery. "While this concession is a slight 
 departure from legal theory, it is doubtless essential if 
 the rule is to be thoroughly workable.^ 
 
 The fact that freight has been shipped once and paid 
 one way cannot be taken into consideration in fixing 
 charges for a subsequent transaction. The principle un- 
 derlying the ordinary transit privilege cannot be relied 
 upon in support of the return-shipment rule. Transit 
 arrangements, in their most common form at least, are 
 
 "Reduced Rates on Returned Shipments, 19 I. C. C. 409, 417. 
 
180 THE ACT TO EEGULATE COMMERCE 
 
 susceptible of defense only upon the theory that the in- 
 bound movements are, in fact, parts of a single continu- 
 ous transaction, WhUe the freight is delayed at the 
 transit point the shipment is merely suspended tem- 
 porarily, the present intention of the shipper being to 
 forward the goods to their Tiltimate destination. Once let 
 it be conceded that the inbound and outbound movement 
 are separate and distinct and the impropriety of apply- 
 ing any rates other than the regularly established locals 
 would be self-evident. It is clear that there is no real 
 connection between an outbound shipment today and a 
 returned shipment one year hence. There is no room 
 whatever for the argument that the shipment is sus- 
 pended during the period intervening between the two 
 transactions, for there is no present intent to accomplish 
 the return movement. It is, therefore, impossible to re- 
 late the two services and urge the one as a reason for 
 granting special terms to the other.^ 
 
 'Beduced Rates on Returned Shipments, 19 I. C. C. 409, 417. 
 
SECTION 23 
 
 Jurisdiction of United States courts, — Section 23 pro- 
 vides that the district courts of the United States shall 
 have jurisdiction upon the relation of any persons, firm, 
 or corporation, allegitig such violation by a conunon car- 
 rier, of any of the provisions of the Act as prevents the 
 relator from having interstate traffic moved by said com- 
 mon carrier at the same rates as are charged, or upon 
 terms or conditions as favorable as those given by said 
 common carrier for like traffic under sinular conditions 
 to any other shipper, to issue a writ or writs of man- 
 damus against said conunon carrier, commanding such 
 common carrier to move and transport the traffic, or to 
 furnish cars or other facilities for transportation for the 
 party applying for the writ.^ 
 
 SECTION 24 
 
 The Interstate Commerce Commission. — Section 24, 
 which amends Section 11, enlarges the Interstate Com- 
 merce Commission to consist of seven members with 
 terms of seven years, each to receive $10,000 compensa- 
 tion annually. 
 
 'For further provisions concerning the power of the United States 
 courts, see the District Court Jurisdiction Act, at the end of this 
 treatise. 
 
 181 
 
MISCELLANEOUS ACTS 
 
 It will be noted that there are other acts that in some 
 way bear upon the Act to Regulate Commerce. As most 
 of these are not of general interest to traffic men, they 
 will be treated very briefly. 
 
 It should be remembered, however, that while some of 
 these acts are not of great importance to traffic men in 
 general, others ^ bear upon particular phases of the 
 handling of traffic, or upon important matters in coimec- 
 tion with transportation. This is true particularly of 
 such acts as the Safety Appliance Act and the Hours of 
 Service Act, 
 
 1. District Court Jurisdiction Act 
 
 This act abolishes what was known as the commerce 
 court. The commerce court was created in 1910 to take 
 care of appeals from the Interstate Commerce Commis- 
 sion. It was deemed advisable in 1913 to abolish this 
 court and provide that appeals from or a review of the 
 decision the Interstate Commerce Commission should go 
 to the various United States district courts. The act con- 
 tains certain limitations on the power of the district 
 court by providing that no interlocutory* injunction re- 
 straining an order of the Commission shall be granted 
 unless heard by three judges after five days' notice to 
 the Commission. There are also other provisions con- 
 cerning procedure, which are of interest chiefly to law- 
 yers. 
 
 T^emporary. 
 
 182 
 
MISCELLANEOUS ACTS 183 
 
 2. Compulsory Testimony Act 
 
 This act provides that no person shall be excused from 
 attending and testifying or from producing books, 
 papers, tariffs, contracts, agreements, and documents, be- 
 fore the Interstate Commerce Commission, or in obedi- 
 ence to the subpoena of the Commission, whether such 
 subpoena be signed or issued by one or more Commis- 
 sioners, or in any cause or proceeding, criminal or other- 
 wise, based upon or growing out of any alleged violation 
 of the Interstate Commerce Act on the ground or for the 
 reason that the testimony or evidence, documentary or 
 otherwise, required of him, may tend to criminate him 
 or subject him to a penalty or forfeiture. But no person 
 shall be prosecuted or subjected to any penalty or for- 
 feiture for or on account of any transaction, matter, or 
 thing concerning which he may testify, or produce evi- 
 dence, documentary or otherwise, before said Commis- 
 sion, or in obedience to its subpoena, or the subpoena of 
 either of them, or in any such case or proceeding. A per- 
 son, so testifying, however, is not exempt from prosecu- 
 tion and punishment for perjury committed in so testi- 
 fying. 
 
 It further provides that any person who shall neglect 
 or refuse to attend and testify, or to answer any lawful 
 inquiry, or to produce books, papers, tariffs, contracts, 
 agreements, and documents, if it is in his power to do so, 
 in obedience to the subpoena or lawful requirement of the 
 Commission, shall be guilty of an offense and upon con- 
 viction thereof by a court of competent jurisdiction, he 
 shall be punished by fine not less than $100, or by im- 
 prisonment for not more than one year, or by both such 
 fine and imprisonment. 
 
184 THE ACT TO REGULATE COMMERCE 
 
 3. Elkins Act 
 
 This act is to be construed in connection with the In- 
 terstate Commerce Act. It provides penalties for various 
 offenses arising from interstate commerce, in addition to 
 those prescribed in the Interstate Commerce Act. 
 
 It provides that anything done or omitted to be done 
 by a corporation common carrier subject to the Inter- 
 state Commerce Act which, if done or omitted to be done 
 by any director or officer thereof, or any receiver, trus- 
 tee, lessee, agent, or person acting for or employed by 
 such corporation, would constitute a misdemeanor under 
 that Act or under this act, shall also be held to be a mis- 
 demeanor committed by such corporation, and upon con- 
 viction thereof, the corporation shall be subject to like 
 penalties as are prescribed in the Interstate Commerce 
 Act or by this act with reference to such persons, except 
 such penalties as are changed by this act. 
 
 The willful failure upon the part of any carrier to file 
 and publish the tariffs or rates and charges as required 
 by the Interstate Commerce Act or strictly to observe 
 such tariffs until changed according to law, is a misde- 
 meanor. The guilty corporation is subject to a fine of 
 not less than $1,000 and not more than $20,000 for each 
 offense. 
 
 It is made unlawful for any person, persons, or corpo- 
 ration to oif er, grant, or give, or to solicit, accept, or re- 
 ceive any rebate, concession, or discrimination in respect 
 to the transportation of any property in interstate or for- 
 eign commerce by any common carrier 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 the Interstate 
 Commerce Act, or whereby any other advantage is given 
 or discrimination is practiced. Every person or corpo- 
 
MISCELLANEOUS ACTS 185 
 
 ration, whether carrier or shipper, who shall, knowingly, 
 offer, grant, or give, or solicit, accept, or receive any 
 such rebates, concession, or discrimination, is guilty of a 
 misdemeanor, and subject to a punishment of not less 
 than $1,000 and not more than $20,000. In addition to 
 the fine provided for, the guilty person is liable to im- 
 prisonment in the penitentiary for a term of not exceed- 
 ing two years, or both such fine and imprisonment, in the 
 discretion of the court. 
 
 4. Expediting Act 
 
 This act provides that any suit in equity pending in 
 any circuit court of the United States under the Inter- 
 state Commerce Act or the Sherman Act, or any other 
 act haAdng a like purpose that may be enacted, in which 
 the United States is complainant, the Attorney-General 
 may file with the clerk of such court a certificate that, 
 in his opinion, the case is of general public importance 
 and thereupon such case shall be given precedence over 
 others, in every way expedited, and assigned for hearing 
 at the earliest practicable day. 
 
 5. Pabcbl Post Act 
 
 The Parcel Post Act gives to the postmaster the right, 
 subject to the consent of the Interstate Commerce Com- 
 mission, to change the classification of articles. It pro- 
 vides that in the classification of mailable articles, as 
 well as the weight limit, the rates of postage, zone or 
 zones, and other conditions of mailability under the Act, 
 if the Postmaster-General shall find on experience that 
 they or any of them are such as to prevent the shipment 
 of articles desirable, or permanently to render the cost 
 of the service greater than the receipts of the revenue 
 
186 THE ACT TO REGULATE COMMERCE 
 
 therefrom, he is authorized, subject to the consent of the 
 Interstate Commerce Commission after investigation, to 
 reform from time to time such classification, weight limit, 
 rates, zone or zones or conditions, or any one of them, in 
 order to promote the service to the public or to insure the 
 receipt of revenue from such service adequate to pay the 
 cost thereof. 
 
 6. BoiLEfe Inspection Act 
 
 This act provides that it is unlawful for any common 
 carrier, its officers, or agents, subject to this act, to use 
 any locomotive engine propelled by steam power in mov- 
 ing interstate or foreign traffic unless the boUer of such 
 locomotive and appurtenances thereof are in proper ccto- 
 dition and safe to operate in the service to wliich the 
 same is put, that the same may be employed in the active 
 service of such carrier in moving traffic without unneces- 
 sary peril to life or Umb. All boilers shall be in- 
 spected from time to time in accordance with the provi- 
 sions of this act, and be able to withstand such test or 
 tests as may be prescribed in the rules and regulations 
 hereinafter provided for. The act then creates a depart- 
 ment of boiler inspection and provides for the appoint- 
 ment of inspectors. It further provides that carriers 
 must maintain rules and instructions for the inspection 
 of locomotive boilers and must file such rules with the 
 chief inspector and with the Interstate Commerce Com- 
 mission. 
 
 While this act is quite long, it is simple. The reader 
 wiU find it printed in the appendix, and should give it the 
 same careful study which he should give all the acts 
 amendatory or supplemental to the Interstate Coromerce 
 Act. 
 
MISCELLANEOUS ACTS 187 
 
 7. Safety Appliance Act 
 
 This act provides that it is unlawful for any carrier 
 engaged in interstate commerce by railroad to use on its 
 line any locomotive engine in moving interstate traffic 
 not equipped with a power driving-wheel brake and ap- 
 pliances for operating the train-brake system ; or to run 
 any train in such traffic after said date that has not a 
 sufficient number of cars in it so equipped with power or 
 train-brakes that the engineer on the locomotive drawing 
 such train can control its speed without requiring brake- 
 men to use the common hand-brake for that purpose. 
 
 It further provides that it is unlawful for any such 
 common carrier to haul or permit to be hauled or used on 
 its line any ear employed in moving interstate traffic not 
 equipped with couplers automatically by impact, and 
 which can be uncoupled without the necessity of men go- 
 ing between the ends of the cars. This act also contains 
 a great many other provisions concerning safety appli- 
 ances. The reader is referred to the appendix, where the 
 act itself is printed. 
 
 8. Block Sigital Act 
 
 This act provides that the Interstate Commerce Com- 
 mission is directed to investigate and report on the use 
 of and necessity for block-signal systems and appliances 
 for the automatic control of railway trains in the United 
 States. For this purpose, the Commission is authorized 
 to employ persons who are familiar with the subject, and 
 may use such of its own employes as are necessary to 
 make a thorough examination into the matter.^ 
 
 'Public Besolution, No. 46, approved June 30, 1906. 
 
188 THE ACT TO REGULATE COMMERCE 
 
 9. Monthly Eeports of Accidents Act 
 
 This act provides that it is the duty of the general 
 manager, superintendent, or other proper oflScer of every 
 common carrier engaged in interstate or foreign com- 
 merce by railroad to make to the Interstate Commerce 
 Commission, at its office in Washington, District of Co- 
 lumbia, a monthly report, under oath, of all collisions, 
 derailments, or other accidents resulting in injury to 
 persons, eqmpment, or roadbed, arising from the opera- 
 tion of such raUroad imder such rules and regulations as 
 may be prescribed by said Commission. This report 
 shall state the nature and causes thereof and the circum- 
 stances connected therewith. 
 
 The Interstate Commerce Commission is given author- 
 ity to investigate all collisions, derailments, or other ac- 
 cidents resulting in serious injury to person or to the 
 property of a railroad occurring on the line of any com- 
 mon carrier engaged in interstate or foreign commerce 
 by railroad. 
 
 10. Hours op Service Act 
 
 This act provides that it is unlawful for any common 
 carrier subject to the Act, or its officers or agents, to re- 
 quire or permit any employe to be or remain on duty for 
 a longer period than sixteen consecutive hours. When- 
 ever any such employe of such common carrier shall have 
 been continuously on duty for sixteen hours, he shall be 
 relieved and not required or permitted again to go on 
 duty until he has had at least ten consecutive hours off 
 duty. No such employe who has been on duty sixteen 
 hours in the aggregate in any twenty-four-hour period 
 shall be required or permitted to continue again to go on 
 duty without having had at least eight consecutive hours 
 
MISCELLANEOUS ACTS 189 
 
 off duty. Except in case of emergency, no operator, train 
 dispatcher, or other employe, who by the use of the tele- 
 graph or telephone dispatches reports, transmits, re- 
 ceives, or delivers orders pertaining to or affecting train 
 movements, shall be required or permitted to be or re- 
 main on duty for a longer period than nine hours, in any 
 twenty-four-hour period in all towers, places, and sta- 
 tions continuously operated night and day; nor for a 
 longer period than thirteen hours in aU towers, offices, 
 places, and stations operated only during the daytime. 
 
 11. Transportation of Explosives Act 
 
 This act provides that specified explosives are not to be 
 carried on passenger vehicles and gives to the Interstate 
 Commerce Commission authority to make regulations for 
 the transportation of explosives. 
 
TEST QUESTIONS 
 
 These questions are for the student to use in testing 
 his knowledge of the assignment. The answers are not 
 to be sent to the University. 
 
 Section 1 
 
 1. Mention the more important classes of carriers to which 
 the Act to Regulate Commerce applies. 
 
 2. If a shipment moving from one point in a state to another 
 point in the same state passes out of the state in moving between 
 the two points, is it deemed an interstate shipment within the 
 meaning of the Act ? 
 
 3. When were pipe lines made common carriers by the Act? 
 
 4. "What is meant by adjacent foreign country? 
 
 5. What did the United States Supreme Court say in the 
 Shreveport case relative to state rates which were so low as to 
 discriminate against interstate rates? 
 
 6. (a) What is meant by the term "railroad" as defined 
 in the Act? (b) What does the term "transportation" include? 
 
 7. Mention some of the elements which are considered in 
 fixing a reasonable rate. 
 
 8. What is the authority of the Interstate Commerce Com- 
 mission over freight classification ? 
 
 9. What authority has the Commission over bills of lading? 
 
 10. (a) Into what three general classes may facilities be di- 
 vided? (b) What authority has the Commission over them? 
 
 11. What are the provisionsi-of Section 1 of the Act as to free 
 transportation? 
 
 12. (a) What is meant by the commodities clause? (b) 
 What was the decision of the United States Supreme Court rela- 
 tive to this clause ? 
 
 13. What authority is given to the Commission relative to 
 ordering the installation of switch connections ? 
 
 Section 2 
 
 1. How does the discrimination specified in Section 2 of the 
 Act compare vnth that specified in Section 3 ? 
 
 2. Give a brief definition of a rebate. 
 
 190 
 
TEST QUESTIONS 191 
 
 Section 3 
 
 1. (a) Give very briefly the provisions of Section 3 of the 
 Act. (b) Mention five important matters which may be gov- 
 erned by this section. 
 
 2. May a carrier as a shipper over the lines of another car- 
 rier have any preference? 
 
 3. In the application of transportation charges, what is said 
 as to discrimination by a carrier against a point to which its line 
 of road does not extend ? 
 
 4. What is the effect of competition in justifying discrim- 
 ination? 
 
 5. "What effect may potential competition have in warrant- 
 ing discrimination? 
 
 6. May the Commission compel a carrier to meet compe- 
 tition? 
 
 7. What is said as to water competition in warranting dis- 
 crimination? 
 
 8. What provision is made in Section 3 relative to the inter- 
 change of facilities? 
 
 9. (a) Under Section 3, may carriers be compelled to give 
 their terminal facilities to a competitor? (b) What is the effect 
 if the carriers voluntarily give the use of their terminals to some 
 competitor ? 
 
 Section 4 
 
 1. What is the substance of Section 4 of the Act as it relates 
 to the making of a greater charge for a shorter than for a longer 
 haul? 
 
 2. (a) What authority is given to the Commission to au- 
 thorize the carriers to violate the fourth section? (b) To what 
 extent are such exceptions made ? 
 
 3. May a carrier in competition with a water route reduce 
 its rates to or from competitive points and then increase such 
 rates if the water competition is eliminated? 
 
 Section 5 
 
 1. What does Section 5 provide relative to the pooling of 
 freight? 
 
 2. What changes were made in Section 5 of the Act by the 
 Panama Canal Act? 
 
 Section 6 
 
 1. What jurisdiction over tariffs is given to the Commis- 
 sion by Section 6 ? 
 
192 TEST QUESTIONS 
 
 2. What provision is made in this section as to publicatioa 
 of tariffs? 
 
 3. What is said in Section 6 relative to the necessity of ad- 
 hering to published rates? 
 
 4. What penalty is provided for an erroneous quotation by 
 carriers? 
 
 5. What provision is made in Section 6 as to the posting of 
 tariffs? 
 
 6. Where are the regulations of the Interstate Commerce 
 Commission relative to the construction of tariffs to be found? 
 
 7. (a) Upon what notice may tariffs ordinarily become ef- 
 fective? (b) What authority rests with the Commission rela- 
 tive to allowing rates to become effective upon less than regu- 
 lar notice ? 
 
 8. May carriers engage in the transportation of passengers 
 or property without regularly published rates filed with the 
 Interstate Commerce Commission? 
 
 9. What penalty is provided for failure or refusal on the 
 part of a carrier or its representative to comply with the regula- 
 tions provided under the provisions of Section 6 ? 
 
 10. How was Section 6 amended by the Panama Canal Act ? 
 
 Section 7 
 
 1. What provision is made in Section 7 as to continuous car- 
 riage ? 
 
 Section 8 
 
 1. What provision is made in Section 8 as to the recovery 
 of attorneys' fees? 
 
 Section 9 
 
 1. What does Section 9 provide relative to the summoning 
 of witnesses ? 
 
 Section 10 
 
 1. What is the substance of Section 10 as to penalties for 
 violation of the Act? 
 
 Section 11 
 
 1. Under Section 11, may anyone having any connection 
 with a common carrier be a Commissioner ? 
 
TEST QUESTIONS 193 
 
 Section 12 
 
 1. What authority is given to the Interstate Commerce Com- 
 mission by Section 12 of the Act? 
 
 Section 13 
 
 1. (a) Under Section 13 of the Act, who may make com- 
 plaint to the Commission? (b) State briefly what action the 
 Commission takes after complaints have been filed with it. 
 
 2. What authority is given the Commission as to making 
 investigations on its own motion ? 
 
 Section 14 
 
 1. What action must the Commission take after it has 
 made an investigation of any matter? 
 
 Section 15 
 
 1. Why is Section 15 such an important part of the Act? 
 
 2. What authority is given to the Commission by Section 15 
 to adjust rates, classifications, or other matters which it deems 
 to be unsatisfactory or in violation of some one or more portions 
 of the Act? 
 
 3. What is said as to the necessity of action by the Com- 
 mission before a matter may be carried to the courts ? 
 
 4. Under what conditions are the orders of the Commis- 
 sion not final? 
 
 5. Upon what grounds may an order which is apparently 
 regular be set aside? 
 
 6. Mention some of the factors which the Commission may 
 consider in the adjustment of a single rate. 
 
 7. Has the Cominission any jurisdiction over capitalization? 
 
 8. What jurisdiction has the Commission over the suspen- 
 sion of rates ? 
 
 9. When a transportation service is rendered without tariff 
 authority, what action may the Commission take? 
 
 10. What jurisdiction has the Commission over divisions? 
 
 11. What power is given to the Cominission relative to ad- 
 vanced rates ? 
 
 12. Mention some of the conditions which may warrant an 
 increase in rates. , 
 
 13. In determining whether a rate is reasonable or not, of 
 what value is the fact that it has been in effect for many years ? 
 
 14. What jurisdiction has the Commission over joint rates 
 and through routes? 
 
194 TEST QUESTIONS 
 
 15. What is said as to the right of the carrier to favor its own 
 line in the routing of traffic ? 
 
 16. How may a satisfactory through route be determined? 
 
 17. What are the rights of the carrier as to withdrawal of 
 through routes? 
 
 18. What is the obligation of carriers to furnish equipment ? 
 
 19. What provision is made in Section 15 as to the shipper's 
 right to route his traffic? 
 
 20. What provisions are made as to the carrier's liability for 
 misrouting freight when the shipper does not furnish routing 
 instructions and when such instructions are furnished ? 
 
 21. What authority has the Commission over electric lines ? 
 
 22. What is said in Section 15 relative to the disclosing of 
 business secrets by employes of carriers? , 
 
 23. What authority has the Commission over allowances to 
 shippers for performing various services ? 
 
 24. Mention three services for which the carriers qtiite often 
 make allowances. 
 
 25. How may an allowance become a rebate? 
 
 Section 16 
 
 1. In Section 16 what authority is given to the Commission 
 relative to the awarding of reparation? 
 
 2. What action is necessary before a shipper can obtain 
 relief from a violation of the Act ? 
 
 3. What action is necessary before an award of damages 
 can be made for the collection of an unreasonable rate? 
 
 4. What is said as to the authority of the Commission to 
 award damages for violation of the Act? 
 
 5. What is said as to the necessity of first paying the tariff 
 rate before reparation can be recovered? 
 
 6. Who are entitled to recover damages? 
 
 7. What is meant by the Statute of Limitations in connec- 
 tion with the Act? 
 
 8. (a) What is a formal complaint? (b) What is an in- 
 formal complaint? 
 
 9. When the Commission awards reparation and the car- 
 riers refuse to pay the reparation, what action must be taken? 
 
 10. What provision is made as to the rehearing of cases de- 
 cided by the Commission? 
 
 Section 17 
 
 1. What are the provisions of Section 17 as to procedure 
 before the Commission? 
 
TEST QUESTIONS 195 
 
 2. State very briefly the various steps in the handling of ;\ 
 complaint. 
 
 3. Where can'the rules of procedure to be followed before 
 the Commission be found? 
 
 Section 18 
 
 1. In Section 18 what authority is given to the Commis- 
 sion as to the conduct of its work? 
 
 Section 19 
 
 1. Where is the principal office of the Interstate Commerce 
 Commission? 
 
 2. What provision is made in Section 19 for holding hear- 
 ings at other points than Washington, D. C. ? 
 
 Section 20 
 
 1. Mention some important matters on which the Commis- 
 sion may require reports from the carriers. 
 
 2. What power has the Commission over the keeping of car- 
 riers' accoiints? 
 
 3. What has the Commission said as to the responsibility of 
 accounting officers in connection with the keeping of carriers' 
 accounts correctly? 
 
 4. What is the substance of the Carmack Amendment ? 
 
 5. Do claims for damage arising under the Carmack Amend- 
 ment come under the jurisdiction of the Interstate Commerce 
 Commission? 
 
 6. What jurisdiction have state courts in enforcing the Car- 
 mack Amendment? 
 
 7. What is the responsibility of the initial carrier for loss 
 or damage under the Carmack Amendment ? 
 
 8. What is said as to the i-estriction of liability by this 
 amendment? 
 
 9. May the carrier release itself from liability for loss or 
 damage occurring from its own negligence ? 
 
 10. May carriers legally insert in a biU of lading a provision 
 that claims must be filed within a specified time ? 
 
 Section 21 
 
 1. (a) By what date should the annual report of the Com- 
 mission be filed? (b) What information ought to be given in 
 this report? 
 
196 TEST QUESTIONS 
 
 Section 22 
 1. What is the substance of Section 22 relative to free trans- 
 portation and reduced rates? 
 
 Section 23 
 
 1. What authority is given to the United States district 
 courts by Section 23 ? 
 
 Section 24 
 
 1. What salary for Interstate Commissioners is provided 
 by Section 24? 
 
 2. How many Commissioners are provided for ? 
 
 JIlSCELLANEOUS ACTS 
 
 1. What is the substance of the Compulsory Testimony Act ? 
 
 2. What penalties are provided by the Elkins Act? 
 
 3. What are the important provisions in the Hours of Serv- 
 ice Act? 
 
THE ACT 
 
 TO 
 
 REGULATE COMMERCE 
 
 (AS AMENDED) 
 
 INCLUDING TEXT OR RELATED 
 SECTIONS OF THE— 
 
 Accident Reports Act ... 
 
 Ash Pan Act ... .... 
 
 Bills of Lading Act 
 
 Block Signal Resolution 
 
 Boiler Inspection Act (as amended) 
 
 Clayton Antitrust Act 
 
 Compulsory Testimony Act . 
 
 District Court Jurisdiction Act 
 
 Elkins Act (as amended) 
 
 Expediting Act (as amended) 
 
 Government-Aided Railroad and Telegraph Act 
 
 Hours of Service Act (as amended) 
 
 Immunity of Witnesses Act 
 
 Lake Erie and Ohio River Ship Canal Act 
 
 Medals of Honor Act 
 
 Regulations (as amended) 
 Parcel Post Acts 
 Railway Mail Service Pay Act . 
 Safety Appliance Act .... 
 
 Tbanspoetation of Explosives Act . 
 
 Page. 
 
 106 
 
 112 
 
 76 
 
 122 
 
 116 
 
 64 
 
 56 
 
 52 
 
 58 
 
 62 
 
 87 
 
 110 
 
 57 
 
 91 
 
 108 
 
 109 
 
 92 
 
 93 
 
 99 
 
 114 
 
 PUBLISHED BY THE INTERSTATE COMMERCE COMMISSION 
 
 REVISED TO JANUARY 1, 1917 
 
 WASHINGTON 
 
 GOVERNMENT PRINTING OFFICE 
 
 1917 
 
ADDITIONAL COPIES 
 
 OP THIS PUBLICATION MAT BE PBOCURED PEOM 
 
 THE SUPERINTENDENT OP DOCUMENTS 
 
 GOVERNMENT PRINTING OPPICE , 
 
 WASHINGTON, D. C. 
 
 AT 
 
 10 CENTS PER COPT 
 
CONTENTS. 
 
 (Showingr citations.) 
 
 Page. 
 An act to regulate commerce, approved February 4, 1887, and in effect April 
 
 5, 1887 (24 Statutes at Large, 379), as amended by an act approved March 
 2, 1889 (25 Statutes at Large, 855), by an act approved February 10, 1891 
 (26 Statutes at Large, 743), by an act approved February 8, 1895 (28 Stat- 
 utes at Large, 643), by an act approved June 29, 1906 (34 Statutes at 
 Large, 584), by a joint resolution approved June 30, 1906 (34 Statutes at 
 Large, 838), by an act approved April 13, 1908 (35 Statutes at Large, 60), 
 by an act approved February 25, 1909 (35 Statutes at Large,_648), by an 
 act approved June 18, 1910 (36 Statutes at Large, 539), by an act approved 
 August 24, 1912 (37 Statutes at Large, 566), by an act approved March 1, 
 1913 (37 Statutes at Large, 701), by an act approved March 4, 1915 (38 
 Statutes at Large, 1197), by an act approved August 9, 1916 (39 Statutes 
 at Large, 441), and by an act approved August 29, 1916 (39 Statutes at 
 Large, 556) 7 
 
 An act making appropriations for sundry civil expenses of the Government 
 for the fiscal year ending June 30, 1915, and for other purposes, approved 
 August 1, 1914 (38 Statutes at Large, 627) 42 
 
 An act to amend an act entitled "An act to codify, revise, and amend the laws 
 relating to the judiciary," approved March 3, 1911, being chapter 231 of 
 Thirty-sixth Statutes at Large, approved January 20, 1914 (38 Statutes at 
 Large, 278) 47 
 
 An act making appropriations to supply urgent deficiencies in appropriations 
 for the fiscal year 1913, and for other purposes, approved October 22, 1913 
 (38 Statutes at Large, 219) 52 
 
 An act in relation to testimony before the Interstate Commerce Conunission ; 
 and in cases or proceedings under or connected with an act entitled "An act 
 to regulate commerce, and amendments thereto,'' approved February 11, 
 1893 (27 Statutes at Large, 443) 56 
 
 An act defining the right of immunity of witnesses under the act entitled "An 
 act in relation to. testimony before the Interstate Commerce Commission, 
 and so forth," approved February 11, 1893, and an act entitled "An act to 
 establish the Department of Commerce and Labor," approved February 14, 
 
 1903, and an act entitled "An act to further regulate conmierce with for- 
 eign nations and among the States," approved February 19, 1903, and an 
 act entitled "An act making appropriations for the legislative, executive, 
 and judicial expenses of the Government for the fiscal year ending June 30, 
 
 1904, and for other purposes," approved February 25, 1903 ; approved June 
 
 30, 1906 (34 Statutes at Large, 798) 57 
 
 An act to further regulate commerce with foreign nations and among the 
 States, approved February 19, 1903 (32 Statutes at Large, 847), as 
 amended by an act approved June 29, 1906 (34 Statutes at Large, 584) ... 58 
 
 3 
 
CONTENTS. 
 
 Page. 
 
 An act to expedite the hearing and determination of suita in equity pending 
 or hereafter brought under the act of July 2, 1890, entitled "An act to pro- 
 tect trade and commerce against unlawful restraints and monopolies," an 
 act to regulate commerce, or any other acts having a like purpose that may 
 be hereafter enacted, approved February 11, 1903 (32 Statutes at Large, 
 823), as amended by an act approved June 25, 1910 (36 Statutes at Large, 
 854) 62 
 
 An act to supplement existing laws against unlawful restraints and monop- 
 olies, and for other purposes, approved October 15, 1914 (38 Statutes at 
 Large, 730), as amended by a joint resolution approved August 31, 1916 
 (39 Statutes at Large, 674) 64 
 
 An act relating to bills of lading in interstate and foreign commerce, approved 
 August 29, 1916 (39 Statutes at Large, 538) 76 
 
 An act supplementary to the act of July 1, 1862, entitled "An act to aid in 
 the construction of a railroad and telegraph line from the Missouri River 
 to the Pacific Ocean, and to secure to the Government the use of the same 
 for postal, military, and! other purposes,'' and also of the act of July 2, 
 1864, and other acts amendatory of said first-named act; approved August 
 7, 1888 (25 Statutes at Large, 382) 87 
 
 An act to incorporate the Lake Erie and Ohio River Ship Canal, to define the 
 powers thereof, and to facilitate interstate commerce, approved June 30, 
 1906 ( 34 Statutes at Large, 809 ) 91 
 
 An act making appropriations for the service of the Post Oflfice Department 
 for the fiscal year ending June 30, 1913, and for other purposes, approved 
 August 24, 1912 (37 Statutes at Large, 558), as amended by an act 
 approved July 28, 1916 (39 Statutes at Large, 412) 92 
 
 An act to promote the safety of employees and travelers upon railroads by 
 compelling common carriers engaged in interstate commerce to equip their 
 cars with automatic couplers and continuous brakes, and their locomotives 
 with driving-wheel brakes, and for other purposes, approved March 2, 1893 
 (27 Statutes at Large, 531), as amended by an act approved April 1, 1896 
 (29 Statutes at Large, 85) 99 
 
 An act to amend an act entitled "An act to promote the safety of employees 
 and travelers, and so forth," approved March 2, 1893, and amended April 1, 
 1896; approved March 2, 1903 (32 Statutes at Large, 943) 101 
 
 An act to supplement an act to promote the safety of employees and travelers 
 upon railroads by compelling common carriers engaged in interstate com- 
 merce to equip their cars with automatic couplers and continuous brakes, 
 and their locomotives with driving-wheel brakes, and for other purposes, 
 and other safety-appliance acts, and for other purposes, approved April 14, 
 1910 (36 Statutes at Large, 298) ; also amendment of March 4, 1911 (36 
 Statutes at Large, 1397 ) ' 103 
 
 An act authorizing the Commission to employ safety-appliance inspectors, 
 approved June 28, 1902 (32 Statutes at Large, 444) 106 
 
 An act requiring common carriers engaged in interstate and foreign commerce 
 to make full reports of all accidents to the Interstate Commerce Commis- 
 sion and authorizing investigations thereof by said Commission, approved 
 May 6, 1910 (36 Statutes at Large, 350) 106 
 
 An act to promote the security of travel upon railiioads engaged in interstate 
 commerce, and to encourage the saving of life, approved February 23, 1905 
 (33 Statutes at Large, 743), and regulations prescribed thereunder 108 
 
CONTENTS. 
 
 Page. 
 
 An act to promote the safety of employees and travelers upon railroads by 
 limiting tbe hours of service of employees thereon, approved March 4, 1907 
 (34 Statutes at Large, 1415), as amended by an act approved May 4, 1916 
 
 . (39 Statutes at Large, 61) 110 
 
 An act to promote the safety of employees on railroads, approved May 30, 
 1908 (35 Statutes at Large, 476) 112 
 
 An act to promote the safe transportation in interstate commerce of explo- 
 sives and other dangerous articles, and to provide penalties for its viola- 
 tion, approved March 4, 1909 (35 Statutes at Large, 1134) 114 
 
 An act to promote the safety of employees and travelers upon railroads by 
 compelling common carriers engaged in interstate commerce to equip their 
 locomotives with safe and suitable boilers and appurtenances thereto, ap- 
 proved February 17, 1911 (36 Statutes at Large, 913), as amended by an act 
 approved March 4, 1915 (38 Statutes at Large, 1192) 116 
 
 Joint resolution directing the Interstate Commerce Commission to investigate 
 and report on block-signal systems and appliances for the automatic control 
 of railway trains, approved June 30, 1906 (34 Statutes at Large, 838) .... 122 
 
 An act making appropriations to supply urgent deficiencies in appropriations 
 for the fiscal year 1913, and for other purposes, approved October 22, 1913 
 ( 38 Statutes at Large, 219 ) 123 
 
 Index 125 
 
The Act to Regulate Commerce as Amended. 
 
 Be it enacted hy the Senate and House of Representa- 
 tives of the United States of America in Congress assem- 
 bled, 
 
 Sec. 1 {As amended June 29, 1906, April 13, 1908, and tr*ilfsportauSn 
 June 18, 1910.) That the provisions of this Act shall ap- subject to the 
 ply to any corporation or any person or persons engaged 
 in the transportation of oil or other commodity, except 
 water and except natural or artificial gas, by means of 
 pipe lines, or partly by pipe lines and partly by railroad, 
 or partly by pipe lines and partly by water, and to tele- teiephonef^a^' 
 graph, telephone, and cable companies (whether wire or '^^l^ compa- 
 wireless) engaged in sending messages from one State, 
 Territory, or District of the United States, to any other 
 State, Territory, or District of the United States, or to 
 any foreign country, who shall be considered and held to 
 be common carriers within the meaning and purpose of 
 this Act, and to any common carrier or carriers engaged 
 in the transportation of passengers or property wholly by ■„atCT™uies^°^ 
 railroad (or partly by railroad and partly by water when 
 both are used under a common control, management, or 
 arrangement for a continuous carriage or shipment), from 
 one State or Territory of the United States or the District 
 of Columbia, to any other State or Territory of the United 
 States or the District of Columbia, or from one place in a 
 Territory to another place in the same Territory, or from 
 any place in the United States to an adjacent foreign 
 country, or from any place in the United States through 
 a foreign country to any other place in the United States, 
 and also to the transportation in like manner of property 
 shipped from any place in the United States to a foreign 
 country and carried from such place to a port of trans- 
 shipment, or shipped from a foreign country to any place 
 in the United States and carried to such place from a 
 port of entry either in the United States or an adjacent 
 foreign country ; Provided, however. That the provisions ^p^f * ^^^^ "°* 
 of this Act shall not apply to the transportation of pas- p ojj t a * ' « ." 
 sengers or property, or to the receiving, delivering, stor- °"e state. 
 
 r 
 
O ACT TO REGULATE COMMERCE. 
 
 age, or handling of property wholly within one State 
 and not shipped to or from a foreign country from or to 
 any State or Territory as aforesaid, nor shall they apply 
 to the transmission of messages by telephone, telegraph, 
 or cable wholly within one State and not transmitted to 
 or from a foreign country from or to any State or Terri- 
 tory as aforesaid, 
 pfnfef iTd ^^® *^^"i " common carrier " as used in this Act shall 
 complTifies '^ fn- include express companies and sleeping car companies, 
 '■'"w'h'a t t h e '^^^ *^^"^ ' ' I'ailroad ' ' as used in this Act shall include all 
 rold"incii>?esr bridges and ferries used or operated in connection with 
 any railroad, and also all the road in use by any corpora- 
 tion operating a railroad, whether owned or operated 
 under a contract, agreement, or lease, and shall also in- 
 clude all switches, spurs, tracks, and terminal facilities 
 of every kind used or necessary in the transportation of 
 the persons or property designated herein, and also all 
 freight depots, yards, and grounds used or necessary in 
 the transportation or delivery of any of said property; 
 t eVm ^"*trans- ^^^ ^^^ term " transportation " shall include cars and 
 ci°udes'°" '"' oth^^ vehicles and all instrumentalities and facilities of 
 shipment or carriage, irrespective of ownership or of any 
 contract, express or implied, for the use thereof and all 
 services in connection with the receipt, delivery, eleva- 
 tion, and transfer in transit, ventilation, refrigeration or 
 icing, storage, and handling of property transported ; and 
 it shall be the duty of every carrier subject to the provi- 
 sions of this Act to provide and furnish such transporta- 
 tion upon reasonable request therefor, and to establish 
 through routes and just and reasonable rates applicable 
 thereto; and to provide reasonable facilities for operating 
 such through routes and to make reasonable rules and 
 regulations with respect to the exchange, interchange, and 
 return of cars used therein, and for the operation of such 
 through routes, and providing for reasonable compensa- 
 tion to those entitled thereto, 
 chargesmust j^n charges made for any service rendered or to be 
 
 be Just and rea- ° ■' 
 
 sonabie. rendered in the transportation of passengers or property 
 
 and for the transmission of messages by telegraph, tele- 
 phone, or cable, as aforesaid, or in connection therewith, 
 shall be just and reasonable; and every unjust and un- 
 reasonable charge for such service or any part thereof is 
 prohibited and declared to be unlawful: Provided, That 
 messages by telegraph, telephone, or cable, subject to the 
 provisions of this Act, may be classified into day, night. 
 
ACT TO REGULATE COMMERCE. 9 
 
 repeated, unrepeated, letter, commercial, press, Govern- 
 ment, and such other classes as are just and reasonable, 
 and different rates may be charged for the different classes 
 of messages: And provided further, That nothing in this 
 Act shall be construed to prevent telephone, telegraph, 
 and cable companies from entering into contracts with 
 common carriers, for the exchange of services. 
 
 And it is hereby made the duty of all common carriers y^^^' ^ ^egu'ill 
 subject to the provisions of this Act to establish, observe, tlcel' must'^^be 
 and enforce just and reasonable classifications of property ^"nabf" ^ ^^^' 
 for transportation, with reference to which rates, tariffs, 
 regulations, or practices are or may be made or prescribed, 
 and just and reasonable regulations and practices affect- 
 ing classifications, rates, or tariffs, the issuance, form, and 
 substance of tickets, receipts, and bills of lading, the man- 
 ner and method of presenting, marking, packing, and 
 delivering property for transportation, the facilities for 
 transportation, the carrying of personal, sample, and ex- 
 cess baggage, and all other matters relating to or con- 
 nected with the receiving, handling, transporting, stor- 
 ing, and delivery of property subject to the provisions of 
 this Act which may be necessary or proper to secure the 
 safe and prompt receipt, handling, transportation, and 
 delivery of property subject to the provisions of this Act 
 upon just and reasonable terms, and every such unjust 
 and unreasonable classification, regulation, and practice 
 with reference to commerce between the States and with 
 foreign countries is prohibited and declared to be un- 
 lawful. 
 
 No common carrier subject to the provisions of this and'^tree tranl- 
 Act shall, after January first, nineteen hundred and seven, ^ib*^'^°" ^^°' 
 directly or indirectly, issue or give any interstate free 
 ticket, free pass, or free transportation for passengers, 
 except to its employees and their families, its officers, 
 agents, surgeons, physicians, and attorneys at law; to ci^^es.^"^^^^ 
 ministers of religion, traveling secretaries of railroad 
 Young Men Christian Associations, inmates of hospitals 
 and charitable and eleemosynary institutions, and persons 
 exclusively engaged in charitable and eleemosynary work ; 
 to indigent, destitute, and homeless persons, and to such 
 persons when transported by charitable societies or hos- 
 pitals, and the necessary agents employed in such trans- 
 portation; to inmates of the National Homes or State 
 Homes for Disabled "Volunteer Soldiers, and of Soldiers' 
 and Sailors' Homes, including those about to enter and 
 
10 ACT TO REGULATE COMMERCE. 
 
 those returning home after discharge; to necessary care 
 takers of live stock, poultry, milk, and fruit; to em- 
 ployees on sleeping cars, express cars, and to linemen of 
 telegraph and telephone companies; to Railway Mail 
 Service employees, post-office inspectors, customs inspec- 
 tors, and immigration inspectors; to newsboys on trains, 
 baggage agents, witnesses attending any legal investiga- 
 tion in which the common carrier is interested, persons 
 injured in wrecks and physicians and nurses attending 
 of ^palses^'au- ^^^^ pcrsons : Provided, That this provision shall not be 
 thorized. construed to prohibit the interchange of passes for the 
 
 officers, agents, and employees of common carriers, and 
 their families; nor to prohibit any common carrier from 
 carrying passengers free with the object of providing 
 relief in cases of general epidemic, pestilence, or other 
 calamitous visitation: And provided further, That this 
 provision shall not be construed to prohibit the privilege 
 of passes or franks, or the exchange thereof with each 
 other, for the officers, agents, employees, and their fam- 
 ilies of such telegraph, telephone, and cable lines, and the 
 officers, agents, employees and their families of other com- 
 mon carriers subject to the provisions of this Act: Pro- 
 What terms mded further. That the term " employees " as used in 
 
 employ ees ' ' ' * •/ 
 
 fnclude*'"'"^^ *^^ paragraph shall include furloughed, pensioned, and 
 superannuated employees, persons who have become dis- 
 abled or infirm in the service of any such common carrier, 
 and the remains of a person killed in the employment of 
 a carrier and ex-employees traveling for the purpose of 
 entering the service of any such common carrier; and 
 the term " families " as used in this paragraph shall in- 
 clude the families of those persons named in this proviso, 
 also the families of persons killed, and the widows during 
 widowhood and minor children during minority of per- 
 sons who died, while in the service of any such common 
 Jurisdiction carrier. Any common carrier violating this provision 
 
 and penalty for " . i\ 
 
 violation. shall be deemed guilty of a misdemeanor, and for each 
 
 offense, on conviction, shall pay to the United States a 
 penalty of not less than one hundred dollars nor more 
 than two thousand dollars, and any person, other than the 
 persons excepted in this provision, who uses any such 
 interstate free ticket, free pass, or free transportation 
 shall be subject to a like penalty. Jurisdiction of offenses 
 under this provision shall be the same as that provided 
 for offenses in an Act entitled "An Act to further regu- 
 
ACT TO REGULATE COMMERCE. 11 
 
 late commerce with foreign nations and among the States," 
 approved February nineteenth, nineteen hundred and 
 three, and any amendment thereof. {See also section 22.) 
 
 From and after May first, nineteen hundred and eight, ciause"""^'*'^^ 
 it shall be unlawful for any railroad company to trans- 
 port from any State, Territory, or the District of Colum- 
 bia, to any other State, Territory, or the District of 
 Columbia, or to any foreign country, any article or com- 
 modity, other than timber and the manufactured prod- 
 ucts thereof, manufactured, mined, or produced by it, 
 or under its authority, or which it may own in whole or 
 in part, or in which it may have any interest, direct or 
 indirect, except such articles or commodities as may be 
 necessary and intended for its use in the conduct of its 
 business as a common carrier. 
 
 Any common carrier subject to the provisions of this 
 Act, upon application of any lateral, branch line of rail- 
 road, or of any shipper tendering interstate traffic for 
 transportation, shall construct, maintain, and operate 
 upon reasonable terms a switch connection with any such du?y*"'%on- 
 lateral, branch line of railroad, or private side track coimectioM"*^^ 
 which may be constructed to connect with its railroad, 
 where such connection is reasonably practicable and can 
 be put in with safety and will furnish sufficient business 
 to justify the construction and maintenance of the same ; 
 and shall furnish cars for the movement of such traffic 
 to the best of its ability without discrimination in favor 
 of or against any such shipper. If any common carrier 
 shall fail to install and operate any such switch or con- 
 nection as aforesaid, on application therefor in writing 
 by any shipper or owner of such lateral, branch line of 
 railroad, such shipper or owner of such lateral, branch 
 line of railroad may make complaint to the Commission, 
 as provided in section thirteen of this Act, and the Com- 
 mission shall hear and investigate the same and shall de- 
 termine as to the safety and practicability thereof and 
 justification and reasonable compensation therefor, and 
 the Commission may make an order, as provided in sec- nectT<Jn* may 
 tion fifteen of this Act, directing the common carrier to ^^^ c o m^m i\^ 
 comply with the provisions of this section in accordance ^ion. 
 with such order, and such order shall be enforced as here- 
 inafter provided for the enforcement of all other orders 
 by the Commission, other than orders for the payment of 
 money. 
 
12 ACT TO REGULATE COMMERCE. 
 
 Sec. 2. That if any common carrier subject to the pro- 
 visions of this Act shall, directly or indirectly, by any 
 special rate, rebate, drawback, or other device, charge, 
 demand, collect, or receive from any person or persons a 
 greater or less compensation for any service rendered, or 
 to be rendered, in the transportation of passengers or 
 ' property, subject to the provisions of this Act, than it 
 
 charges, demands, collects, or receives from any other 
 crim"nation'de^ person or persons for doing for him or them a like and 
 bwden^"^ ^°'^' contemporaneous service in the transportation of a like 
 kind of traffic under substantially similar circumstances 
 and conditions, such common carrier shall be deemed 
 guilty of unjust discrimination, which is hereby pro- 
 hibited and declared to be unlawful. 
 
 Sec. 3. That it shall be unlawful for any common car- 
 rier subject to the provisions of this Act to make or give 
 reasSnabiepref- ^^^ unduc or Unreasonable preference or advantage to 
 vantage forbid- ^^^ particular pcrson, company, firm, corporation, or 
 ''^"- locality, or any particular description of traffic, in any 
 
 respect whatsoever, or to subject any particular person, 
 company, firm, corporation, or locality, or any particular 
 description of traffic, to any undue or unreasonable prej- 
 udice or disadvantage in any respect whatsoever. 
 
 Every common carrier subject to the provisions of this 
 Act shall, according to their respective powers, afford all 
 in^rchange *of reasonable, proper, and equal facilities for the inter- 
 trafflc. change of traffic between their respective lines, and for 
 
 the receiving, forwarding, and delivering of passengers 
 and property to and from their several lines and those 
 tion'^'^iT'tween Connecting therewith, and shall not discriminate in their 
 iin""orbidaeif ^^^^^ ^^^ charges between such connecting lines; but this 
 shall not be construed as requiring any such common car- 
 rier to give the use of its tracks or terminal facilities to 
 another carrier engaged in like business. 
 
 Sec. 4. {As amended June 18, 1910.) That it shall be 
 unlawful for any common carrier subject to the provi- 
 sions of this Act to charge or receive any greater com- 
 pensation in the aggregate for the transportation of pas- 
 Long and sengers, or of like kind of property, for a shorter than for 
 
 short haul pro- e> > , , . . , 
 
 vision. a longer distance over the same line or route m the same 
 
 direction, the shorter being included within the longer 
 distance, or to charge any gi-eater compensation as a 
 through route than the aggregate of the intermediate 
 rates subject to the provisions of this Act; but this shall 
 not be construed as authorizing any common carrier with- 
 
ACT TO REGULATE COMMERCE. 13 
 
 in the terms of this Act to charge or receive as great com- 
 pensation for a shorter as for a longer distance : Provided, 
 however, That upon application to the Interstate Com- ^ a ^°autho^°" 
 merce Commission such common carrier may in special r?ers^'i'rom '^f^ 
 cases, after investigation, be authorized by the Commis- °f^''s^uo„ °^ 
 sion to charge less for longer than for shorter distances 
 for the transportation of passengers or property; and 
 the Commission may from time to time prescribe the ex- 
 tent to which such designated common carrier may be 
 relieved from the operation of this section: Provided 
 further, That no rates or charges lawfully existing at the 
 time of the passage of this amendatory Act shall be 
 i-equired to be changed by reason of the provisions of this 
 section prior to the expiration of six months after the 
 passage of this Act, nor in any case where application 
 shall have been filed before the Commission, in accord- 
 ance with the provisions of this section, until a determi- 
 nation of such application by the Commission. 
 
 Whenever a carrier by railroad shall in competition juced^to^melit 
 with a water route or routes reduce the rates on the car- tion^'no°™o^be 
 riage of any species of freight to or from competitive i;i!.!S?„c„^j5^°"' 
 points, it shall not be permitted to increase such rates 
 unless after hearing by the Interstate Commerce Commis- 
 sion it shall be found that such proposed increase rests 
 upon changed conditions other than the elimination of 
 water competition. 
 
 Sec. 4. (As amended August 24, 1912.) That it shall be 
 unlawful for any common carrier subject to the provi- 
 sions of this Act to enter into any contract, agreement, or 
 combination with any other common carrier or carriers 
 for the pooling of freights of different and competing frefghts^ana d°- 
 railroads, or to divide between them the aggregate or net ^n|s"forbillen' 
 proceeds of the earnings of such railroads, or any portion 
 thereof; and in any case of an agreement for the pooling 
 of freights as aforesaid, each day of its continuance shall 
 be deemed a separate offense. 
 
 Prom and after the first day of July, nineteen hundred ^^ August"!"* 
 and fourteen, it shall be unlawful for any railroad com- i^^^. 
 pany or other common carrier subject to the Act to regu- 
 late commerce to own, lease, operate, control, or have any 
 interest whatsoever (by stock ownership or otherwise, ^ Railroads not 
 
 ** 'to own com- 
 
 either directly, indirectly, through any holding company, pe ting water 
 or by stockholders or directors in common, or in any other 
 manner) in any common carrier by water operated 
 
14 ACT TO REGULATE COMMERCE. 
 
 through the Panama Canal or elsewhere with which said 
 railroad or other carrier aforesaid does or may compete 
 for traffic or any vessel carrying freight or passengers 
 upon said water route or elsewhere with which said rail- 
 road or other carrier aforesaid does or may compete for 
 Penalty. traffic; and in case of the violation of this provision each 
 day in which such violation continues shall be deemed a 
 separate offense. 
 to *^d2t2rminS Jurisdiction is hereby conferred on the Interstate Com- 
 uon^ °'""^^"' fierce Commission to determine questions of fact as to 
 the competition or possibility of competition, after full 
 hearing, on the application of any railroad company or 
 other carrier. Such application may be filed for the pur- 
 pose of determining whether any existing service is in 
 violation of this section and pray for an order permitting 
 the continuance of any vessel or vessels already in opera- 
 tion, or for the purpose of asking an order to install new 
 service not in conflict with the provisions of this para- 
 graph. The Commission, may on its own motion or the 
 application of any shipper institute proceedings to inquire 
 into the operation of any vessel in use by any railroad or 
 other carrier which has not applied to the Commission 
 and had the question of competition or the possibility of 
 flnaf^*'^^ ^° ^^ competition determined as herein provided. In all such 
 cases the order of said Commission shall be final. 
 Commission's If the Interstate Commerce Commission shall be of the 
 
 authority to al- 
 
 oT'ce^tain'^ves- opiiiioii t^i^t any such existing specified service by water 
 railroads^ ^^ Other than through the Panama Canal is being operated 
 in the interest of the public and is of advantage to the 
 convenience and commerce of the people, and that such 
 extension will neither exclude, prevent, nor reduce com- 
 petition on the route by water under consideration, the 
 Interstate Commerce Commission may, by order, extend 
 the time during which such service by water may continue 
 to be operated beyond July first, nineteen hundred and 
 Rates of such fourteen. In every case of such extension the rates, 
 
 WOftcr ca,rri6rs *~ •/ ' 
 
 t o b e filed schedules, and practices of such water carrier shall be 
 
 with Commis- ' -^ ~ . . ■,■,■,■, 
 
 sion. filed with the Interstate Commerce Commission and shall 
 
 be subject to the Act to regulate commerce and aU amend- 
 ments thereto in the same manner and to the same extent 
 as is the railroad or other common carrier controlling such 
 water carrier or interested in any manner in its operation : 
 Provided, Any application for extension under the terms 
 of this provision filed with the Interstate Commerce Com- 
 mission prior to July first, nineteen hundred and fourteen. 
 
ACT TO REGULATK COMMERCE. 15 
 
 but for any reason not heard and disposed of before said 
 date, may be considered and granted thereafter. 
 
 No vessel permitted to engage in the coastwise or for- shermln"^ a c°t 
 eign trade of the United States shall be permitted to enter ^^^^j '° "^® 
 or pass through said canal if such ship is owned, char- 
 tered, operated, or controlled by any person or company 
 which is doing business in violation of the provisions of 
 the Act of Congress approved July second, eighteen hun- 
 dred and ninety, entitled "An Act to protect trade and 
 commerce against unlawful restraints and monopolies," 
 or the provisions of sections seventy-three to seventy- 
 seven, both inclusive, of an Act approved August twenty- 
 seventh, eighteen hundred and ninety-four, entitled "An 
 Act to reduce taxation, to provide revenue for the Govern- 
 ment, and for other purposes," or the provisions of any 
 other Act of Congress amending or supplementing the 
 said Act of July second, eighteen hundred and ninety, 
 commonly known as the Sherman Antitrust Act, and 
 amendments thereto, or said sections of the Act of August 
 twenty-seventh, eighteen hundred and ninety-four. The 
 question of fact may be determined by the judgment of 
 any court of the United States of competent jurisdiction 
 in any cause pending before it to which the owners or 
 operators of such ship are parties. Suit may be brought 
 by any shipper or by the Attorney General of the United 
 States. 
 
 Sec. 6. {Amended March 2, 1889. Following section 
 substituted June 29, 1906. Amended June 18, 1910, Au- 
 gust 24, 1912, and August 29, 1916.) That every com- 
 mon carrier subject to the provisions of this Act shall file 
 with the Commission created by this Act and print and 
 keep open to public inspection schedules showing all the 
 rates, fares, and charges for transportation between dif- 
 ferent points on its own route and between points on its 
 own route and points on the route of any other carrier by 
 railroad, by pipe line, or by water when a through route 
 and joint rate have been established. If no joint rate over 
 the through route has been established, the several carriers 
 in such through route shall file, print and keep open to pQ-^J'i'n"^ ^o ? 
 public inspection as aforesaid, the separately, established ?ates^fare?and 
 rates, fares and charges applied to the through trans- in|'"4^ie"*^'and 
 portation. The schedules printed as aforesaid by any Jg^tYn "^ gfe 
 such common carrier shall plainly state the places be- same.icin&.stor- 
 tween which property and passengers will be earned, and Snd°f'r%'i^Vt 
 shall contain the classification of freight in force, and classifications. 
 
16 ACT TO REGULATE COMMERCE. 
 
 shall also state separately all terminal charges, storage 
 charges, icing charges, and all other charges which the 
 Commission may require, all privileges or facilities 
 granted or allowed and any rules or regulations which in 
 any wise change, affect, or determine any part or the 
 aggregate of such aforesaid rates, fares, and charges, or 
 the value of the service rendered to the passenger, ship- 
 per, or consignee. Such schedules shall be plainly printed 
 in large type, and copies for the use of the public shall be 
 kept posted in two public and conspicuous places in every 
 depot, station, or office of such carrier where passengers 
 or freight, respectively, are received for transportation, 
 in such form that they shall be accessible to the public 
 and can be conveniently inspected. The provisions of 
 this section shall apply to all traffic, transportation, and 
 facilities defined in this Act. 
 p os^u*!?! ^f -^^y common carrier subject to the provisions of this 
 rates^onfreight ^^^ receiving freight in the United States is to be carried 
 a'^forefgn'coun^ through a foreign country to any place in the United 
 try- States shall also in like manner print and keep open to 
 
 public inspection, at every depot or office where such 
 freight is received for shipment, schedules showing the 
 through rates established and charged by such common 
 carrier to all points in the United States beyond the for- 
 eign country to which it accepts freight for shipment; 
 je^'^to^^usto^s ^^^ ^^^ freight shipped from the United States through 
 fau^re'to^ub- ^ foreign country into the United States the through rate 
 rates* ^^°^^^ on wMch shall not have been made public, as required by 
 this Act, shall, before it is admitted into the United 
 States from said foreign country, be subject to customs 
 duties as if said freight were of foreign production. 
 Thirty days' No change shall be made in the rates, fares, and charges 
 
 public notice of ^ i ' , , ■, ^? ■, 
 
 change in rates qj. -joint rates, fares, and charges which have been filed 
 
 must be given. " •> ' ' ■= , . 
 
 and published by any common carrier m compliance with 
 the requirements of this section, except after thirty days' 
 notice to the Commission and to the public published as 
 aforesaid, which shall plainly state the changes proposed 
 to be made in the schedule then in force and the- time 
 when the changed rates, fares, or charges will go into 
 effect ; and the proposed changes shall be shown by print- 
 ing new schedules, or shall be plainly indicated upon the 
 schedules in force at the time and kept open to public 
 inspection: Provided, That the Commission may, in its 
 discretion and for good cause shown, allow changes upon 
 less than the notice herein specified, or modify the re- 
 
ACT TO REGULATE COMMERCE. 17 
 
 quirements of this section in respect to publishing, post- may'^Xdify^'re" 
 ing, and filing of tariffs, either in particular instances or ^hu^sectlon. °^ 
 by a general order applicable to special or peculiar cir- 
 cumstances or conditions. 
 
 The names of the several carriers which are parties to ^u°t'"' speedy 
 any joint tariff shall be specified therein, and each of the "f^® g plrtS- 
 parties thereto, other than the one filing the same, shall dence'' of^conl 
 file with the Commission such evidence of concurrence currence. 
 therein or acceptance thereof as may be required or ap- 
 proved by the Commission, and where such evidence of 
 concurrence or acceptance is filed it shall not be necessary 
 for the carriers filing the same to also file copies of the 
 tariffs in which they are named as parties. 
 
 Every common carrier subject to this Act shall also file tracts ^^ agree- 
 with said Commission copies of all contracts, agreements, J^^g'l^ents re- 
 or arrangements with other common carriers in relation ]^^g^ i?e'''^flied 
 to any traffic affected by the provisions of this Act to ^lon ^ *^°'"'"'®" 
 which it may be a party. 
 
 The Commission may determine and prescribe the form ^ a y"prescribe 
 in which the schedules required by this section to be kept ^°{^^ °* sched- 
 open to public inspection shall be prepared and arranged 
 and may change the form from time to time as shall be 
 found expedient. 
 
 No carrier, unless otherwise provided by this Act, shall sh^u engage In 
 engage or participate in the transportation of passengers unSs^^'^mes 
 or property, as defined in this Act, unless the rates, fares, f^^^ FaHr^^tni 
 and charges upon which the same are transported by said charges there- 
 carrier have been filed and published in accordance with 
 the provisions of this Act ; nor shall any carrier charge or 
 demand or collect or receive a greater or less or different 
 compensation for such transportation of passengers or 
 property, or for any service in connection therewith, 
 between the points named in such tariffs than the rates, r rt"e's' ' to* be 
 fares, and charges which are specified in the tariff filed Served*''' "''' 
 and in effect at the time ; nor shall any carrier refund or 
 remit in any manner or by any device any portion of the 
 rates, fares, and charges so specified, nor extend to any 
 shipper or person any privileges or facilities in the trans- 
 portation of passengers or property, except such as are 
 specified in such tariffs: Provided, That wherever the ^I'^S^.-lS'"" 
 
 * iTl 6 3i XI S COin~ 
 
 word " carrier " occurs in this Act it shall be held to mean "O" carrier." 
 " common carrier." 
 
 That in time of war or threatened war preference and „ ^ '" ^ ^ ® J?*?'^® 
 
 ^ and expedition 
 
 precedence shall, upon the demand of the President of traffic \n* tin/ 
 the United States, be given over all other traffic for the °^ ^ar. 
 64823°— 17 2 
 
18 ACT TO REGULATE COMMERCE. 
 
 transportation of troops and material of war, and. car- 
 riers shall adopt every means within their control to 
 of A^ISst"!"! facilitate and expedite the military traffic. And in time 
 ^^^* of peace shipments consigned to agents of the United 
 
 States for its use shall be delivered by the carriers as 
 promptly as possible and without regard to any embargo 
 that may have been declared, and no such embargo shall 
 apply to shipments so consigned. 
 
 The Commission may reject and refuse to file any 
 o f "VJf S'l™!^* schedule that is tendered for filing which does not pro- 
 ^'^^- vide and give lawful notice of its effective date, and any 
 
 may 're'/e'ct Schedule SO rejected by the Commission shall be void and 
 Sfes**" ^''^^' i*^ ^^® ^^^^^ ^6 unlawful. 
 
 In case of failure or refusal on the part of any carrier, 
 receiver, or trustee to comply with the terms of any regu- 
 lation adopted and promulgated or any order made by 
 the Commission under the provisions of this section, such 
 fanure 'to com- carrier, receiver, or trustee shall be liable to a penalty of 
 fation '* '^^^" ^^^ hundred dollars for each such offense, and twenty-five 
 dollars for each and every day of the continuance of such 
 offense, which shall accrue to the United States and may 
 be recovered in a civil action brought by the United 
 States. 
 furntsh'^ ' wit- ^^ ^^^ common carrier subject to the provisions of this 
 ofrate**^*™^"* ^^^' ^fter Written request made upon the agent of such 
 carrier hereinafter in this section referred to, by any per- • 
 son or company for a written statement of the rate or 
 charge applicable to a described shipment between stated 
 places under the schedules or tariffs to which such carrier 
 is a party, shall refuse or omit to give such written state- 
 ment within a reasonable time, or shall misstate in writ- 
 ing the applicable rate, and if the person or company 
 making such request suffers damage in consequence of 
 such refusal or omission or in consequence of the mis- 
 Penaity for statement of the rate, either through making the ship- 
 
 Wl 1 S S L3>L6IX16Ilt ■■•11 • 
 
 of rate. mcnt ovcr a line or route for which the proper rate is 
 
 higher than the rate over another available line or route, 
 or through entering into any sale or other contract where- 
 under such person or company obligates himself or itself 
 to make such shipment of freight at his or its cost, then 
 the said carrier shall be liable to a penalty of two hun- 
 dred and fifty dollars, which shall accrue to the United 
 States and may be recovered in a civil action brought by 
 the United States. 
 
ACT TO REGULATR COMMERCE. 19 
 
 It shall be' the duty of every carrier by railroad to keep ri^^™affMit*to 
 at all times conspicuously posted in every station where ^^ posted, 
 freight is received for transportation the name of an 
 agent resident in the city, village, or town where such 
 station is located, to whom application may be made for 
 the information by this section required to be furnished 
 on written request ; and in case any carrier shall fail at 
 any time to have such name so posted in any station, it 
 shall be sufficient to address such request in substantially 
 
 the following form: " The Station Agent of the 
 
 Company at Station," together with the name of 
 
 the proper post office, inserting the name of the carrier 
 company and of the station in the blanks, and to serve 
 the same by depositing the request so addressed, with 
 postage thereon prepaid, in any post office. 
 
 When property may be or is transported from point to of'^Ajugust"!"' 
 point in the United States by rail and water through the i^^^- 
 Panama Canal or otherwise, the transportation being by 
 a common carrier or carriers, and not entirely within the 
 limits of a single State, the Interstate Commerce Com- has "jurism"- 
 mission shall have jurisdiction of such transportation and" water traf- 
 and of the carriers, both by rail and by water, which may partl^uiara *^'" 
 or do engage in the same, in the following particulars, in 
 addition to the jurisdiction given by the Act to regulate 
 commerce, as amended June eighteenth, nineteen hundred 
 and ten: 
 
 (a) To establish physical connection between the lines „ ^c t f o n' ''be- 
 of the rail carrier and the dock of the water carrier by and**" dock''"ol 
 directing the rail carrier to make suitable connection be- ^^.ter carriers, 
 tween its line and a track or tracks which have been con- 
 structed from the dock to the limits of its right of way, 
 or by directing either or both the rail and water carrier, 
 individually or in connection with one another, to con- 
 struct and connect with the lines of the rail carrier a 
 spur track or tracks to the dock. This provision shall 
 only apply where such connection is reasonably practi- 
 cable, can be made with safety to the public, and where 
 the amount of business to be handled is sufficient to jus- 
 tify the outlay. 
 
 The Commission shall have full authority to determine may^dStemiS" 
 the terms and conditions upon which these connecting ^^j/^^g^"^ ^°[J; 
 tracks, when constructed, shall be operated, and it may, ^^™a"i°n. ^""^ 
 either in the construction or the operation of such tracks, 
 determine what sum shall be paid to or by either carrier. 
 The provisions of this paragraph shall extend to eases 
 
20 ACT TO REGULATE COMMERCE. 
 
 where the dock is owned by other parties than the car- 
 rier involved, 
 roules and"o1nt (^) '^^ establish through routes and maximum joint 
 raff\nd^water ^^^^^ between and over such rail and water lines, and to 
 carriers. determine all the terms and conditions under which such 
 
 lines shall be operated in the handling of the traffic em- 
 \ braced. 
 
 ratS°^to"aifd ^^) '^^ establish maximum proportional rates by rail 
 from ports. to and from the ports to which the traffic is brought, or 
 from which it is taken by the water carrier, and to deter- 
 mine to what traffic and in connection with what vessels 
 and upon what terms and conditions such rates shall 
 apply. By proportional rates are meant those which 
 differ from the corresponding local rates to and from the 
 port and which apply only to traffic which has been 
 brought to the port or is carried from the port by a com- 
 mon carrier by water, 
 roi^es and"ofnt ^^^ ^^ ^"^ -"^^^^ Carrier subject to the Act to regulate 
 rau \nd^wate? Commerce enters into arrangements with any water car- 
 carriers_from^a j.{qj. operating from a port in the United States to a for- 
 United ^States gjgjj country, through the Panama Canal or otherwise, for 
 cana^'^'' ^ * ^ *^® handling of through business between interior points 
 of the United States and such foreign country, the Inter- 
 state Commerce Commission may require such railway to 
 enter into similar arrangements with any or all other 
 lines of steamships operating from said port to the same 
 foreign country. 
 Proceedings The orders of the Interstate Commerce Commission re- 
 
 before the Com- 
 mission to en- lating to this section^ shall only be made upon formal 
 
 lOrC6 LJ16SO 
 
 amendments, complaint or in proceedings instituted by the Commission 
 of its own motion and after full hearing. The orders 
 provided for in the two amendments to the Act to regulate 
 commerce enacted in this section ^ shall be served in the 
 same manner and enforced by the same penalties and pro- 
 ceedings as are the orders of the Commission made under 
 the provisions of section fifteen of the Act to regulate 
 commerce, as amended June eighteenth, nineteen hundred 
 and ten, and they may be conditioned for the payment of 
 any sum or the giving of security for the payment of any 
 sum or the discharge of any obligation which may be re- 
 quired by the terms of said order. 
 
 Sec. 7. That it shall be unlawful for any common car- 
 rier subject to the provisions of this Act to enter into any 
 combination, contract, or agreement, expressed or im- 
 
 > Section 11 of the Panama Canal Act: 37 Stat. L., 566-568. 
 
ACT TO REGULATE COMMERCE. 21 
 
 plied, to prevent, by change of time schedule, carriage in 
 different cars, or by other means or devices, the carriage 
 of freights from being continuous from the place of ship- 
 ment to the place of destination; and no break of bulk, 
 stoppage, or interruption made by such common carrier 
 shall prevent the carriage of freights from being and 
 being treated as one continuous carriage from the place f rS|ht's^^ u s t 
 of shipment to the place of destination, unless such break, contfnuo'us^ mi- 
 stoppage, or interruption was made in good faith for in^|ood*'^a1th '^ 
 some necessary purpose, and without any intent to avoid 
 or unnecessarily interrupt such continuous carriage or to 
 evade any of the provisions of this Act. 
 
 Sec. 8. That in case any common carrier subject to the 
 provisions of this Act shall do, cause to be done, or permit 
 to be done any act, matter, or thing in this Act prohibited 
 or declared to be unlawful, or shall omit to do any act, 
 matter, or thing in this Act required to be done, such com- 
 mon carrier shall be liable to the person or persons in- common'% ab- 
 jured thereby for the full amount of damages sustained ^'^^'| /aused^by 
 in consequence of any such violation of the provisions of violation of this 
 this Act, together with a reasonable counsel or attorney's 
 fee, to be fixed by the court in every case of recovery, 
 which attorney's fee shall be taxed and collected as part 
 of the costs in the case. 
 
 Sec. 9. That any person or persons claiming to be dam- ciaTmln/ to "be 
 aged by any common carrier subject to the provisions of et™c^^whether 
 this Act may either make complaint to the Commission as the'c'omm'is" 
 hereinafter provided for, or may bring suit in his or their |'°"j t*""; „'''"! 
 own behalf for the recovery of the damages for which Yoy'^t"^ states 
 such common carrier may be liable under the provisions 
 of this Act, in any district or circuit court of the United 
 States of competent jurisdiction; but such person or per- 
 sons shall not have the right to pursue both of said 
 remedies, and must in each case elect which one of the 
 two methods of procedure herein provided for he or they 
 will adopt. In any such action brought for the recovery 
 of damages the court before which the same shall be 
 pending may compel any director, officer, receiver, trus- ^ePendln^t may 
 tee, or agent of the corporation or company defendant fl g tTF y'^'but 
 in such suit to attend, appear, and testify in such case, fr^j^^^n^^"^'"^ 
 and may compel the production of the books and papers 
 of such corporation or company party to any such suit; 
 the claim that any such testimony or evidence may tend 
 to criminate the person giving such evidence shall not 
 excuse such witness from testifying, but such evidence 
 
22 ACT TO REGULATE COMMERCE. 
 
 or testimony shall not be used against such person on the 
 trial of any criminal proceeding. 
 vi^ltioM*' o°f S^^- 1^- (-^^ amended March 2, 1889, and June 18, 
 OT^^'whSi'^'tife ^^^0-) That any common carrier subject to the provisions 
 co^porauon'^ui °^ *^^'* -^^*' *^^» whenever such common carrier is a cor- 
 or^'^empfoy^e'e^: Poi'^'tioJij ^ny director or officer thereof, or any receiver, 
 prfionment. '""" trustee, lessee, agent, or person acting for or employed by 
 such corporation, who, alone or with any other corpora- 
 tion, company, person, or party, shall willfully do or cause 
 to be done, or shall willingly suffer or permit to be done, 
 any act, matter, or thing in this Act prohibited or de- 
 clared to be unlawful, or who Shall aid or abet therein, or 
 shall willfully omit or fail to do any act, matter, or thing 
 in this Act required to be done, or shall cause or willingly 
 suffer or permit any act, matter, or thing so directed or 
 required by this Act to be done not to be so done, or shall 
 aid or abet any such omission or failure, or shall be guilty 
 of any infraction of this Act for which no penalty is 
 otherwise provided, or who shall aid or abet therein, shall 
 be deemed guilty of a misdemeanor, and shall, upon con- 
 viction thereof in any district court of the United States 
 within the jurisdiction of which such offense was com- 
 mitted, be subject to a fine of not to exceed five thousand 
 dollars for each offense : Provided, That if the offense for 
 which any person shall be convicted as aforesaid shall be 
 an unlawful discrimination in rates, fares, or charges for 
 the transportation of passengers or property, such person 
 shall, in addition to the fine hereinbefore provided for, 
 be liable to imprisonment in the penitentiary for a term 
 of not exceeding two years, or both such fine and im- 
 prisonment, in the discretion of the court. 
 fai^e"^''b1fiing^ -^^^ commou carrier subject to the provisions of this 
 riers their offl- ^'^^' ^^> 'whenever such common carrier is a corporation, 
 Fi'tfe°and*"mi ^^^ officer or agent thereof, or any person acting for or 
 prisonment. employed by such corporation, who, by means of false 
 billing, false classification, false weighing, or false report 
 of weight, or by any other device or means, shall know- 
 ingly and willfully assist, or shall willingly suffer or per- 
 mit, any person or persons to obtain transportation for 
 property at less than the regular rates then established 
 and in force on the line of transportation of such common 
 carrier, shall be deemed guilty of a misdemeanor, and 
 shall, upon conviction thereof in any court of the United 
 States of competent jurisdiction within the district in 
 
ACT TO REGULATE COMMERCE. 23 
 
 which such offense was committed, be subject to a fine of 
 not exceeding five thousand dollars, or imprisonment in 
 the penitentiary for a term of not exceeding two years, 
 or both, in the discretion of the court, for each offense. 
 
 Any person, corporation, or company, or any agent or f a^®s"e'*bifiine' 
 officer thereof, who shall deliver property for transporta- ^^°- ^^^ ^JjJp^ 
 tion to any common carrier subject to the provisions of anef°°mprison- 
 this Act, or for whom, as consignor or consignee, any '"«"'• 
 such carrier shall transport property, who shall know- 
 ingly and willfully, directly or indirectly, himself or by 
 employee, agent, officer, or otherwise, by false billing, 
 false classification, false weighing, false representation 
 of the contents of the package or the substance of the 
 property, false report of weight, false statement, or by 
 any other device or means, whether with or without 
 the consent or connivance of the carrier, its agent, or 
 officer, obtain or attempt to obtain transportation for 
 such property at less than the regular rates then estab- 
 lished and in force on the line of transportation; or who 
 shall knowingly and willfully, directly or indirectly, 
 himself or by employee, agent, officer, or otherwise, by 
 false statement or representation as to cost, value, nature, 
 or extent of injury, or by the use of any false bill, bill of 
 lading, receipt, voucher, roU, account, claim, certificate, 
 affidavit, or deposition, knowing the same to be false, 
 fictitious, or fraudulent, or to contain any false, fictitious, 
 or fraudulent statement or entry, obtain or attempt to 
 obtain any allowance^ refund, or payment for damage or 
 otherwise in connection with or growing out of the trans- 
 portation of or agreement to transport such property, 
 whether with or without the consent or connivance of the 
 carrier, whereby the compensation of such carrier for 
 such transportation, either before or after payment, shall 
 in fact be made less than the regular rates then established 
 and in force on the line of transportation, shall be deemed 
 guilty of fraud, which is hereby declared to be a misde- 
 meanor, and shall, upon conviction thereof in any court 
 of the United States of competent jurisdiction within the 
 district in which such offense was wholly or in part com- 
 mitted, be subject for each offense to a fine of not exceed- 
 ing five thousand dollars or imprisonment in the peniten- 
 tiary for a term of not exceeding two years, or both, in 
 the discretion of the court : Provided, That the penalty of 
 imprisonment shall not apply to artificial persons. 
 
24 ACT TO REGULATE COMMERCE. 
 
 inducing'^com- ^^ ^^Y ®^^^ person, or any officer or agent of any such 
 to "d^scrimlnatl Corporation or company, shall, by payment of money or 
 a'J^d^hnprison- °^^^^ thing of value, solicitation, or otherwise, induce or 
 liabiuty w°th attempt to inducc any common carrier subject to the pro- 
 damagesf ^°'^ visions of this Act, or any of its officers or agents, to dis- 
 criminate unjustly in his, its, or their favor as against 
 any other consignor or consignee in the transportation of 
 property, or shall aid or abet any common carrier in any 
 such unjust discrimination, such person or such officer or 
 agent of such corporation or company shall be deemed 
 guilty of a misdemeanor, and shall, upon conviction 
 thereof in any court of the United States of competent 
 jurisdiction within the district in which such offense was 
 committed, be subject to a fine of not exceeding five 
 thousand dollars, or imprisonment in the penitentiary for 
 a term of not exceeding two years, or both, in the discre- 
 tion of the court, for each offense; and such person, cor- 
 poration, or company shall also, together with said com- 
 mon carrier, be liable, jointly or severally, in an action 
 to be brought by any consignor or consignee discrimi- 
 nated against in any court of the United States of com- 
 petent jurisdiction for all damages caused by or resulting 
 therefrom. 
 Interstate gEc. 11. That a Commission is hereby created and es- 
 
 Commerce '' 
 
 •^"JT^Pl'ffiPS®^? tablished to be known as the Interstate Commerce Com- 
 
 — m e t n o a or 
 
 and'terms^"^^"* mission, which shall be composed of five Commissioners, 
 who shall be appointed by the President, by and .with the 
 advice and consent of the Senate. The Commissioners 
 first appointed under this Act shall continue in office for 
 the term of twoj three, four, five, and six years, respec- 
 tively, from the first day of January, Anno Domini 
 eighteen hundred and eighty-seven, the term of each to be 
 designated by the President; but their successors shall be 
 appointed for terms of six years, except that any person 
 chosen to fill a vacancy shall be appointed only for the 
 unexpired time of the Commissioner whom he shall suc- 
 ceed. Any Commissioner may be removed by the Presi- 
 dent for inefficiency, neglect of duty, or malfeasance in 
 office. Not more than three of the Commissioners shall 
 be appointed from the same political party. No person 
 in the employ of or holding any official relation to any 
 common carrier subject to the pro\dsions of this Act, or 
 owning stock or bonds thereof, or who is in any manner 
 pecuniarily interested therein, shall enter upon the duties 
 of or hold such office. Said Commissioners shall not en- 
 
ACT TO REGULATE COMMERCE. 25 
 
 gage in any other business, vocation, or employment. No 
 vacancy in the Commission shall impair the right of the 
 remaining Commissioners to exercise all the powers of 
 the Commission. (See section 24, enlarging Commission 
 and increasing salaries.) 
 
 Sec. 12. {As amended March 2, 1889, and February 10, to^inq'^^i^inw 
 1891.) That the Commission hereby created shall have rref"^lnd'keep 
 authority to inquire into the management of the business f^^^ r e^gaTd 
 of all common carriers subject to the provisions of this thereto. 
 Act, and shall keep itself informed as to the manner and 
 method in which the same is conducted, and shall have to *exe'c^e^ and 
 the right to obtain from such common carriers full and tPo^ns^^of^'^this 
 complete information necessary to enable the Commission ^'^^■ 
 to perform the duties and carry out the objects for which 
 it was created; and the Commission is hereby authorized 
 and required to execute and enforce the provisions of 
 this Act ; and, upon the request of the Commission, it shall 
 be the duty of any district attorney of the United States n^^^^to *prose- 
 to whom the Commission may apply to institute in the rection" oF At- 
 proper court and to prosecute under the direction of the tomey General. 
 Attorney General of the United States all necessary pro- 
 ceedings for the enforcement of the .provisions of this Act 
 and for the punishment of all violations thereof, and the 
 costs and expenses of such prosecution shall be paid out 
 of the appropriation for the expenses of the courts of the 
 United States : and for the purposes of this Act the Com- ^,9, 'J.'?!?!??*^2 
 
 ' X- jr may require 
 
 mission shall have power to require, by subpoena, the at- ^o*c'u°mentary 
 tendance and testimony of witnesses and the production evidence, 
 of all books, papers, tariffs, contracts, agreements, and 
 documents relating to any matter under investigation. 
 Such attendance of witnesses, and the production of „5°"^I^^„.t° 
 
 ' ^ compel wit- 
 
 such documentary evidence, may be required from any anl^festify"^'"^ 
 place in the United States, at any designated place of 
 hearing. And in case of disobedience to a subpoena the 
 Commission, or any party to a proceeding before the 
 Commission, may invoke the aid of any court of the 
 United States in requiring the attendance and testimony 
 of witnesses and the production of books, papers, and 
 documents under the provisions of this section. 
 
 And any of the circuit courts of the United States 
 within the jurisdiction of which such inquiry is carried 
 on may, in case of contumacy or refusal to obey a sub- 
 poena issued to any common carrier subject to the provi- 
 sions of this Act, or other person, issue an order requiring 
 such common carrier or other person to appear before 
 
26 
 
 AOT TO REGULATE COMMERCE. 
 
 said Commission (and produce books and papers if so 
 ordered) and give evidence touching the matter in ques- 
 tion ; and any failure to obey such order of the court may 
 t e^'fi'mony or ^^ punishcd by such court as a contempt thereof. The 
 tend^'to* crim'i" claim that any such testimony or evidence may tend to 
 excuse'witness! Criminate the person giving such evidence shall not excuse 
 such witness from testifying; but such evidence or testi- 
 mony shall not -be used against such person on the trial of 
 any criminal proceeding. 
 Depositions. fj^g testimony of any witness may be taken, at the 
 instance of a party, in any proceeding or investigation 
 pending before the Commission, by deposition, at any 
 time after a cause or proceeding is at issue on petition and 
 m5''*o'rd2r^tes- ^■iiswer. The Commission may also order testimony to be 
 ta™en^by*^depo- t^^^n by deposition in any proceeding or investigation 
 sition. pending before it, at any stage of such proceeding or in- 
 
 vestigation. Such depositions may be taken before any 
 judge of any court of the United States, or any commis- 
 sioner of a circuit, or any clerk of a district or circuit 
 court, or any chancellor, justice, or judge of a supreme 
 or superior court, mayor or chief magistrate of a city, 
 judge of a county court, or court of common pleas of any 
 of the United States, or any notary public, not being of 
 counsel or attorney to either of the parties, nor interested 
 in the event of the proceeding or investigation. Reason- 
 able notice must first be given in writing by the party or 
 his attorney proposing to take such deposition to the 
 opposite party or his attorney of record, as either may be 
 nearest, which notice shall state the name of the witness 
 and the time and place of the taking of his deposition. 
 Any person may be compelled to appear and depose, and 
 to produce documentary evidence, in the same manner as 
 witnesses may be compelled to appear and testify and 
 produce documentary evidence before the Commission as 
 hereinbefore provided. 
 
 Every person deposing as herein provided shall be cau- 
 tioned and sworn (or affirm, if he so request) to testify 
 the whole truth, and shall be carefully examined. His 
 testimony shall be reduced to writing by the magistrate 
 taking the deposition, or under his direction, and shall, 
 after it has been reduced to writing, be subscribed by the 
 deponent. 
 When witness jf a witness whose testimony may be desired to be 
 
 is in a foreign ... » . 
 
 country. taken by deposition be m a foreign country, the deposition 
 
 may be taken before an officer or person designated by the 
 
ACT TO REGULATE COMMERCE. 27 
 
 Commission, or agreed upon by the parties by stipulation 
 in writing to be filed with the Commission, All deposi- 
 tions must be promptly filed with the Commission. 
 
 Witnesses whose depositions are taken pursuant to this neSelani mag- 
 Act, and the magistrate or other officer taking the same, 'strates. 
 shall severally be entitled to the same fees as are paid for 
 like services in the courts of the United States. 
 
 Sec. 13, (As amended June 18, 1910.) That any per- co°mmfssfon° 
 son, firm, corporation, company, or association, or any ^ iio nf^made^ 
 mercantile, agricultural, or manufacturing society or h°^ served, 
 other organization, or any body politic or municipal or- 
 ganization, or any common carrier, complaining of any- 
 thing done or omitted to be done by any common carrier 
 subject to the provisions of this Act, in contravention of 
 the provisions thereof, may apply to said Commission by 
 petition, which shall briefly state the facts; whereupon a 
 statement of the complaint thus made shall be forwarded 
 by the Commission to such common carrier, who shall be 
 called upon to satisfy the complaint, or to answer the 
 same in writing, within a reasonable time, to be specified 
 by the Commission. If such common carrier within the 
 time specified shall make reparation for the injury al- 
 leged to have been done, the common carrier shall be re- 
 lieved of liability to the complainant only for the partic- 
 ular violation of law thus complained of. If such car- to^have''^\°s- 
 rier or carriers shall not satisfy the complaint within the manner of in- 
 time specified, or there shall appear to be any reasonable vesugation. 
 ground for investigating said complaint, it shall be the 
 duty of the Commission to investigate the matters com- 
 plained of in such manner and by such means as it shall 
 deem proper. 
 
 Said Commission shall, in like manner and with the 
 same authority and powers, investigate any complaint 
 forwarded by the railroad commissioner or railroad com- 
 mission of any State or Territory at the request of such 
 commissioner or commission, and the Interstate Com- ^^"i^s'Se^l,^" 
 merce Commission shall have full authority and power gitfon" '"belun 
 at any time to institute an inquiry, on its own motion, in °^^ts own mo- 
 any case and as to any matter or thing concerning which 
 a complaint is authorized to be made, to or before said 
 Commission by any provision of this Act, or concerning 
 which any question may arise under any of the provi- 
 sions of this Act, or relating to the enforcement of any 
 of the provisions of this Act. And the said Commission 
 shall have the same powers and authority to proceed with 
 
28 ACT TO REGULATE COMMERCE. 
 
 any inquiry instituted on its own motion as though it had 
 been appealed to by complaint or petition under any of 
 the provisions of this Act, including the power to make 
 and enforce any order or orders in the case, or relating 
 to the matter or thing concerning which the inquiry is 
 had excepting orders for the payment of money. No 
 a n?s° ""interest Complaint shall at any time be dismissed because of the 
 immaterial. absence of direct damage to the complainant. 
 
 Sec. 14. {Amended March 2, 1889, and June 29, 1906.) 
 miSt* r^plf r°" '^^^^ whenever an investigation shall be made by said 
 cfusions"''an'd Commission, it shall be its duty to make a report in writ- 
 order. JQg jjj respect thereto, which shall state the conclusions of 
 the Commission, together with its decision, order, or re- 
 Reparation. quirement in the premises; and in ease damages are 
 awarded such report shall include the findings of fact on 
 which the award is made. 
 be^lnterld^"of -^^ reports of investigations made by the Commission 
 Toe o'f'copies'on ^^^^ ^c entered of record, and a copy thereof shall be fur- 
 -- parties. nished to the party who may have complained, and to any 
 - common carrier that may have been complained of. 
 deSsfons^to^be '^^^ Commission may provide for the publication of its 
 b'e'^competen^ reports and decisions in such form and manner as may be 
 as evidence. jjgg^ adapted for public information and use, and such au- 
 thorized publications shall be competent evidence of the 
 reports and decisions of the Commission therein contained 
 in all courts of the United States and of the several States 
 without any further proof or authentication thereof, 
 points""?' Com- '^^^ Commission may also cause to be printed for early 
 mission. distribution its annual reports. 
 
 Sec. 15. {As amended June 29, 1906, and June 18, 
 may "determine ^^^0.) That whenever, after full hearing upon a com- 
 ^lst"^ and^'^rea- pl^i^^* made as provided in section thirteen of this Act, or 
 anT^'clasSflca- ^^tcr fuU hearing under an order for investigation and 
 ^L™t/i*°„?™?5" hearing made by the Commission on its own initiative 
 imum charges, (either in extension of any pending complaint or without 
 any complaint whatever), the Commission shall be of 
 opinion that any individual or joint rates or charges 
 whatsoever demanded, charged, or collected by any com- 
 mon carrier or carriers subject to the provisions of this 
 Act for the transportation of persons or property or for 
 the transmission of messages by telegraph or telephone as 
 defined in the first section of this Act, or that any indi- 
 vidual or joint classifications, regulations, or practices 
 whatsoever of such carrier or carriers subject to the pro- 
 visions of this Act are unjust or unreasonable or unjustly 
 
ACT TO REGULATE COMMERCE. 29 
 
 discriminatory, or unduly preferential or prejudicial or 
 otherwise in violation of any of the provisions of this Act, 
 the Commission is hereby authorized and empowered to mM'°determine 
 determine and prescribe what will be the just and reason- ^^^^ anl^Tea- 
 able individual or joint rate or rates, charge or charges, f aTfcf n s^^^^^r 
 to be thereafter observed in such case as the maximum to R!!f;?i,'p5^- 
 
 U o m m 1 s sion 
 
 be charged, and what individual or joint classification, He^ °to^'cease 
 regulation, or practice is just, fair, and reasonable, to be vl'^o'^fa t' o^n's 
 thereafter followed, and to make an order that the carrier of""the °com- 
 or carriers shall cease and desist from such violation to J"Ji^'^'^„ ^^I'^l' 
 
 1 V G £L S P r G" 
 
 the extent to which the Commission finds the same to ^ot'*'!ess''"than 
 exist, and shall not thereafter publish, demand, or collect thirty days, 
 any rate or charge for such transportation or transmission 
 in excess of the maximum rate or charge so prescribed, 
 and shall adopt the classification and shall conform to and 
 observe the regulation or practice so prescribed. All force *^not * ex" 
 orders of the Commission, except orders for the payment yea?s^ ' "unless 
 of money, shall take effect within such reasonable time, |et''a"'^f^e by 
 not less than thirty days, and shall continue in force for ^°^™'^®'°" °'' 
 such period of time, not exceeding two years, as shall be 
 prescribed in the order of the Commission, unless the 
 same shall be suspended or modified or set aside by the 
 Commission, or be suspended or set aside by a court of 
 competent jurisdiction. "Whenever the carrier or carriers, ^ j^rV "aif '^to 
 in obedience to such order of the Commission or other- f^J^^ °^ f^y^i 
 wise, in respect to joint rates, fares, or charges, shall fail ^fj®' n^°^^re- 
 to agree among themselves upon the apportionment or ffon*® of"^Tuch 
 division thereof the Commission may, after hearing, ce^ved°by ^a'cli 
 make a supplemental order prescribing the just and rea- carrier, 
 sonable proportion of such joint rate to be received by 
 each carrier party thereto, which order • shall take effect 
 as a part of the original order. 
 
 Whenever there shall be filed with the Commission any of^new^Shld" 
 schedule stating a new individual or joint rate, fare, or "'«^- 
 charge, or any new individual or joint classification, or 
 any new individual or joint regulation or practice affect- 
 ing any rate, fare, or charge, the Commission shall have, 
 and it is hereby given, authority, either upon complaint 
 or upon its own initiative without complaint, at once, 
 and if it so orders, without answer or other formal plead- 
 ing by the interested carrier or carriers, but upon reason- 
 able notice, to enter upon a hearing concerning the pro- 
 priety of such rate, fare, charge, classification, regulation, 
 or practice; and pending such hearing and the decision i„ay"\'SLp^iSd 
 thereon the Commission upon filing with such schedule "^'^ schedules. 
 
30 ACT TO RKGULATE COMMERCE. 
 
 and delivering to the carrier or carriers affected thereby 
 a statement in writing of its reasons for such suspension 
 may suspend the operation of such schedule and defer 
 the use of such rate, fare, charge, classification, regula- 
 tion, or practice, but not for a longer period than one 
 hundred and twenty days beyond the time when such 
 rate, fare, charge, classification, regulation, or practice 
 would otherwise go into effect; and after full hearing, 
 whether completed before or after the rate, fare, charge, 
 classification, regulation, or practice goes into effect, the 
 Commission may make such order in reference to such 
 rate, fare, charge, classification, regulation, or practice as 
 would be proper in a proceeding initiated after the rate, 
 fare, charge, classification, regulation, or practice had 
 m^°"™te*nd l^scome effective: Provided, That if any such hearing can 
 suspension. j^ot be coucludcd within the period of suspension, as 
 above stated, the Interstate Commerce Commission may, 
 in its discretion, extend the time of suspension for a fur- 
 proof^^on car- *^®'' pcriod uot exceeding six months. At any hearing 
 sonaMeness'^''of involving a rate increased after January first, nineteen 
 increased rates, hundred and ten, or of a rate sought to be increased after 
 the passage of this Act, the burden of proof to show that 
 the increased rate or proposed increased rate is just and 
 reasonable shall be upon the common carrier, and the 
 Commission shall give to the hearing and decision of such 
 questions preference over all other questions pending 
 before it and decide the same as speedily as possible. 
 m^° "estawish "^^^ Commission may also, after hearing, on a com- 
 Mid"jorn/?ates P^^i^t or upou its owu initiative without complaint, 
 tiorw '^'^**'"*^" establish through routes and joint classifications, and 
 may establish joint rates as the maximum to be charged 
 and may prescribe the division of such rates as herein- 
 before provided and the terms and conditions under 
 which such through routes shall be operated, whenever 
 the carriers themselves shall have refused or neglected to 
 establish voluntarily such through routes or joint classi- 
 fications or joint rates; and this provision shall apply 
 when one of the connecting carriers is a water line. The 
 Commission shall not, however, establish any through 
 route, classification, or rate between street electric pas- 
 senger railways not engaged in the general business of 
 transporting freight in addition to their passenger and 
 express business and railroads of a different character, 
 nor shall the Commission have the right to establish any 
 route, classification, rate, fare, or charge when the trans- 
 
ACT TO REGULATE COMMERCE. 31 
 
 portation is wholly by water, and any transportation by 
 water aifected by this Act shall be subject to the laws and 
 regulations applicable to transportation by water. 
 
 And in establishing such through route, the Commission on^ p™we^"to 
 shall not require any company, without its consent, to Siroulh routM! 
 embrace in such route substantially less than the entire 
 Jength of its railroad and of any intermediate railroad 
 operated in conjunction and under a common manage- 
 ment or control therewith which lies between the termini 
 of such proposed through route, unless to do so would 
 make such through route unreasonably long as compared 
 with another practicable through route which could other- 
 wise be established. 
 
 In all cases where at the time of delivery of property aefigSatrrcmu 
 to any railroad corporation being a common carrier, for *°s. 
 transportation subject to the provisions of this Act to any 
 point of destination, between which and the point of such 
 delivery for shipment two or more through routes and 
 through rates shall have been established as in this Act 
 provided to which through routes and through rates such 
 carrier is a party, the person, firm, or corporation making 
 such shipment, subject to such reasonable exceptions and 
 regulations as the Interstate Commerce Commission shall 
 from time to time prescribe, shall have the right to 
 designate in writing by which of such through routes 
 such property shaU be transported to destination, and it 
 shall thereupon be the duty of the initial carrier to route 
 said property and issue a through bill of lading therefor 
 as so directed, and to transport said property over its 
 own lines or lines and deliver the same to a connecting 
 line or lines according to such through route, and it 
 shall be the duty of each of said connecting carriers to 
 receive said property and transport it over the said line 
 or lines and deliver the same to the next succeeding car- 
 rier or consignee according to the routing instractions in 
 said bill of lading: Provided, Tiowever, That the shipper 
 shall in aU instances have the right to determine, where 
 competing lines of railroad constitute portions of a 
 through line or route, over which of said competing lines 
 so constituting a portion of said through line or route his 
 freight shall be transported. 
 
 It shall be unlawful for any common carrier subject to _j^"or'"reieiv2 
 the provisions of this Act, or any officer, agent, or em- reiluvetJ)thip- 
 ployee of such common carrier, or for any other person or ments. 
 corporation lawfully authorized by such common car- 
 
32 
 
 ACT TO REGULATE COMMERCE. 
 
 Exceptions. 
 
 Penalty. 
 
 C o mmission 
 may deter- 
 mine reason- 
 able maximum 
 to be paid for 
 service r e n- 
 dered or in- 
 s t r umentality 
 furnished 
 by owner of 
 property trans- 
 ported. 
 
 Enumeration 
 of powers in 
 tliis section not 
 exclusive. 
 
 rier to receive information therefrom, knowingly to dis- 
 close to or permit to be acquired by any person or cor- 
 poration other than the shipper or consignee, without 
 the consent of such shipper or consignee, any information 
 concerning the nature, kind, quantity, destination, con- 
 signee, or routing of any property tendered or delivered 
 to such common carrier for interstate transportation, 
 which information may be used to the detriment or 
 prejudice of such shipper or consignee, or which may im- 
 properly disclose his business transactions to a competi- 
 tor; and it shall also be unlawful for any person or cor- 
 poration to solicit or knowingly receive any such infor- 
 mation which may be so used: Provided, That nothing in 
 this Act shall be construed to prevent the giving of such 
 information in response to any legal process issued under 
 the authority of any state or federal court, or to any 
 officer or agent of the Government of the United States, 
 or of any State or Territory, in the exercise of his powers, 
 or to any officer or other duly authorized person seeking 
 such information for the prosecution of persons charged 
 with or suspected of crime; or information given by a 
 common carrier to another carrier or its duly authorized 
 agent, for the purpose of adjusting mutual traffic ac- 
 counts in the ordinary course of business of such carriers. 
 
 Any person, corporation, or association violating any 
 of the provisions of the next preceding paragraph of this 
 section shall be deemed guilty of a misdemeanor, and for 
 each offense, on conviction, shall pay to the United States 
 a penalty of not more than one thousand dollars. 
 
 If the owner of property transported under this Act 
 directly or indirectly renders any service connected with 
 such transportation, or furnishes any instrumentality 
 used therein, the charge and allowance therefor shall be 
 no more than is just and reasonable, and the Commission 
 may, after hearing on a complaint or on its own initi- 
 ative, determine what is a reasonable charge as the maxi- 
 mum to be paid by the carrier or carriers for the services 
 so rendered or for the use of the instrumentality so fur- 
 nished, and fix the same by appropriate order, which 
 order shall have the same force and effect and be enforced 
 in like manner as the orders above provided for under 
 this section. 
 
 The foregoing enumeration of powers shall not exclude 
 any power which the Commission would otherwise have 
 
Act to regulate commerce. 33 
 
 in the making of an order under the provisions of this 
 Act. 
 
 Sec. 16. {Amended March 2, 1889, June 29, 1906, and 
 June 18, 1910.) That if, after hearing on a complaint ^^r^^g^aby 
 made as provided in section thirteen of this Act, the Com- commission, 
 mission shall determine that any party complainant is en- 
 titled to an award of damages under the provisions of this 
 Act for a violation thereof, the Commission shall make an 
 order directing the carrier to pay to the complainant the 
 sum to vifhich he is entitled on or before a day named. 
 
 If a carrier does not comply with an order for the pay- ^ ^^°^ ^^ y^' 
 ment of money within the time limit in such order, the courts, 
 complainant, or any person for whose benefit such order 
 was made, may file in the circuit court of the United 
 States for the district in which he resides or in which is 
 located the principal operating office of the carrier, or 
 through which the road of the carrier runs, or in any state 
 court of general jurisdiction having jurisdiction of the 
 parties, a petition setting forth briefly the causes for 
 which he claims damages, and the order of the Commis- 
 sion in the premises. Such suit in the circuit court of faS'"of"^com- 
 the United States shall proceed in all respects like other S^fe'°"evide^t 
 civil suits for damages, except that on the trial of such j.ases!^^^'^^""" 
 suit the findings and order of the Commission shall be 
 prima facie evidence of the facts therein stated, and ex- 
 cept that the petitioner shall not be liable for costs in the 
 circuit court nor for costs at any subsequent stage of the 
 proceedings unless they accrue upon his appeal. If the attomey4°fee3! 
 petitioner shall finally prevail he shall be allowed a rea- 
 sonable attorney's fee, to be taxed and collected as a part 
 of the costs of the suit. All complaints for the recovery 
 of damages shall be filed with the Commission within two 
 years from the time the cause of action accrues, and not 
 after, and a petition for the enforcement of an order for of^acuo'n^ *"°° 
 the payment of money shall be filed in the circuit court 
 or state court Avithin one year from the date of the order, 
 and not after. 
 
 In such suits all parties in whose favor the Commission tiffs°'"may '*sue 
 may have made an award for damages by a single order i°^^^ ,„'*courts 
 may be joined as plaintiffs, and all of the carriers parties 5S„,||'e^a^^« °* 
 to such order awarding such damages may be joined as 
 defendants, and such suit may be maintained by such 
 joint plaintiffs and against such joint defendants in any 
 district where any one of such joint plaintiffs could main- 
 64823"— 17 3 
 
34 ACT TO EEGULATE COMMERCK. 
 
 tain such suit against any one of such joint defendants; 
 
 process ' ° * °* and service of process against any one of such defendants 
 
 as may not be found in the district where the suit is 
 
 brought may be made in any district where such defendant 
 
 carrier has its principal operating office. In case of such 
 
 joint suit the recovery, if any, may be by judgment in 
 
 favor of any one of such plaintiffs, against the defendant 
 
 found to be liable to such plaintiff. 
 
 order ""Ji* Com- Every order of the Commission shall be forthwith 
 
 mission. served upon the designated agent of the carrier in the 
 
 city of Washington or in such other manner as may be 
 
 provided by law. 
 
 mf y "ySspend '^^^ Commission shall be authorized to suspend or 
 
 der"""*^'**^ "'■" modify its orders upon such notice and in such manner 
 
 as it shall deem proper. 
 th*efr '^agenu ^^ shall be the duty of every common carrier, its agents 
 and ^empjoy^s. ^nd employees, to observe and comply with such orders 
 ders ^"* °'^' ^° ^o^g as the same shall remain in effect, 
 b y^ "f orf'eiture -^^ Carrier, any officer, representative, or agent of a 
 obey'^^order of Carrier, or any receiver, trustee, lessee, or agent of either 
 undS *" section °-^ them, who knowingly fails or neglects to obey any 
 ^5- order made under the provisions of section fifteen of this 
 
 Act shall forfeit to the United States the sum of five 
 thousand dollars for each offense. Every distinct viola- 
 tion shall be a separate offense, and in case of a continu- 
 ing violation each day shall be deemed a separate offense. 
 payabFe^ ^ nYo "^^^ forfeiture provided for in this Act shall be payable 
 ^iTcovCTabie^m ^^*o *^^ Treasury of the United States, and shall be re- 
 civii suit. eoverable in a civil suit in the name of the United States, 
 
 brought in the district where the carrier has its principal 
 operating office, or in any district through which the road 
 of the carrier runs. 
 tri?t"'attorn^ys ^^ shall be the duty of the various district attorneys, 
 to prosecute, under the direction of the Attorney General of the 
 United States, to prosecute for the recovery of forfei- 
 ex^enses to "be ^^^^^- ^^^^ costs and expcnses of such prosecution shall 
 "ro'^riation for ^® P^^^ °^* ^^ *^® appropriation for the expenses of the 
 court expenses, courts of the United States. 
 
 ^Commiyion The Commission may employ such attorneys at it finds 
 torneys. neccssary for proper legal aid and service of the Commis- 
 
 sion or its members in the conduct of their work or for 
 proper representation of the public interests in investi- 
 gations made by it or cases or proceedings pending be- 
 fore it, whether at the Commission's own instance or upon 
 
ACT TO REGULATE COMMEECE. 35 
 
 complaint, or to appear for and represent the Commission 
 in any case pending in the Commerce Court; and the ex- 
 penses of such employment shall be paid out of the ap- 
 propriation for the Commission. 
 
 If any carrier fails or neglects to obey any order of the court"™ ° en- 
 Commission other than for the payment of money, while ^^{^^® than ^f or 
 
 the same is in effect, the Interstate Commerce Commis- S,^''™^"* °* 
 ' - money. 
 
 sion or any party injured thereby, or the United States, 
 by its Attorney General, may apply to the Commerce 
 Court for the enforcement of such order. If, after hear- 
 ing, that Court determines that the order was regularly 
 made and duly served, and that the carrier is in disobedi- 
 ence of the same, the Court shall enforce obedience to such 
 order by a writ of injunction or other proper process, 
 mandatory or otherwise, to restrain such carrier, its offi- 
 cers, agents, or representatives, from further disobedience 
 of such order, or to enjoin upon it or them obedience to 
 the same. 
 
 The copies of schedules and classifications and tariffs contricte^ "and 
 of rates, fares, and charges, and of all contracts, agree- 1"""!^ "^wft^h 
 ments, and arrangements between common carriers filed are "public rec- 
 with the Commission as herein provided, and the statis- °^<J|' ^s'^^prima 
 tics, tables, and figures contained in the annual or other CM^tlflld'copies 
 reports of carriers made to the Commission as required therefronf also 
 under the provisions of this Act shall be preserved as pub- gyj^^g^ *^'^*® 
 lie records in the custody of the secretary of the Com- 
 mission, and shall be received as prima facie evidence 
 of what they purport to be for the purpose of investiga- 
 tions by the Commission and in all judicial proceedings; 
 and copies of and extracts from any of said schedules, 
 classifications, tariffs, contracts, agreements, arrange- 
 ments, or reports, made public records as aforesaid, certi- 
 fied by the secretary, under the Commission's seal, shall 
 be received in evidence with like effect as the originals. 
 
 Sec. 16a. (Added June 29, 1906.) That after a deci- mfy^S-ailf r°e" 
 sion, order, or requirement has been made by the Com- hearings, 
 mission in any proceeding any party thereto may at any 
 time make application for rehearing of the same, or any 
 matter determinecl therein, and it shall be lawful for the 
 Commission in its discretion to grant such a rehearing if 
 sufficient reason therefor be made to appear. Applica- f o^ ^r^ehearlni 
 tions for rehearing shall be governed by such general it6"as'°s\ay ^oie 
 rules as the Commission may establish. No such appli- unless *so '"cr- 
 eation shall excuse any carrier from complying with or ^Islfon^ '^°'"" 
 pbejdng any decision, order, or requirement of the Com- 
 
36 ACT TO REGULATE COMMERCE. 
 
 mission, or operate in any manner to stay or postpone 
 the enforcement thereof, without the special order of the 
 Commission. In case a rehearing is granted the pro- 
 ceedings thereupon shall conform as nearly as may be to 
 the proceedings in an original hearing, except as the Com 
 mission may otherwise direct; and if, in its judgment, 
 after such rehearing and the consideration of all facts, 
 including those arising since the former hearing, it shall 
 appear that the original decision, order, or requirement 
 is in any respect unjust or unwarranted, the Commission 
 may!o"?ehear" ^^y I'^verse, change, or modify the same accordingly. 
 cW'a^ng^'^Vr -^^^ decision, order, or requirement made after such re- 
 modify order, hearing, reversing, changing, or modifying the original 
 determination shall be subject to the same provisions as 
 an original order, 
 ma^y "determine ^^^- ^'^- (^^ amended March 2, 1889.) That the Com- 
 cedure*^" P"""" mission may conduct its proceedings in such manner as 
 will best conduce to the proper dispatch of business and 
 to the ends of justice. A majority of the Commission 
 shall constitute a quorum for the transaction of business, 
 but no Commissioner shall participate in any hearing or 
 proceeding in which he has any pecuniary interest. Said 
 Commission may, from time to time, make or amend such 
 general rules or orders as may be requisite for the order 
 and regulation of proceedings before it, including forms 
 of notices and the service thereof, which shall conform, 
 as nearly as may be, to those in use in the courts of the 
 appear'ln ^er- United States. Any party may appear before said Com- 
 torney^ ^^ ^'" "lission and be heard, in person or by attorney. Every 
 vote and official act of the Commission shall be entered of 
 record, and its proceedings shall be public upon the re- 
 Offlciai seal, quest of either party interested. Said Commission shall 
 have an official seal, which shall be judicially noticed. 
 Either of the members of the Commission may administer 
 oaths and affirmations and sign subpcenas. 
 
 Sec. 18. {As amended March 2, 1889.) [See section 
 24, increasing salaries of Commissioners.] That each 
 Commissioner shall receive an annual salary of seven 
 thousand five hundred dollars, payable in the same man- 
 ner as the judges of the courts of the United States. The 
 Commission shall appoint a secretary, who shall receive 
 an annual salary of three thousand five hundred dollars,* 
 payable in like manner. The Commission shall have 
 
 * Increased to $5,000 by sundry civil act of March 4, 1907, 24 Stat. 
 L., 1311. 
 
ACT TO REGULATE COMMERCE. 37 
 
 authority to employ and fix the compensation of such 
 
 other employees as it may find necessary to the proper 
 
 performance of its duties. Until otherwise provided by 
 
 law, the Commission may hire suitable offices for its use, 
 
 and shall have authority to procure all necessary office 
 
 supplied. Witnesses summoned before the Commission fee^ ' * " ®*^®^' 
 
 shall be paid the same fees and mileage that are paid 
 
 witnesses in the courts of the United "States. 
 
 All of the expenses of the Commission, including all 
 necessary expenses for transportation incurred by the 
 Commissioners, or by their employees under their orders, 
 in making any investigation, or upon official business in 
 any other places than in the city of Washington, shall be 
 allowed and paid on the presentation of itemized vouch- 
 ers therefor approved by the chairman of the Com- 
 mission. 
 
 Sec. 19. That the principal office of the Commission flce"at''^washl 
 shall be in the city of Washington, where its general ses- insto"- 
 sions shall be held; but whenever the convenience of the thf com mis- 
 public or the parties may be promoted, or delay or ex- ^'°"- 
 pense prevented thereby, the Commission may hold spe- 
 cial sessions in any part of the United States. It may, by ^^° ^™illute 
 one or more of the Commissioners, prosecute any inquiry oSe^or'mlfr^^^ 
 necessary to its duties, in any part of the United States, any™art'of\he 
 into any matter or question of fact pertaining to the busi- umted states, 
 ness of any common carrier subject to the provisions of 
 this Act. 
 
 Sec. 19a. That the Commission shall, as hereinafter of^jS'a^??™^"! 
 provided, investigate, ascertain, and report the value of ^^^^• 
 all the property owned or used by every common carrier 
 subject to the provisions of this Act. To enable the Com- ^y'^SJ^^^fs^Von" 
 mission to make such investigation and report, it is au- Experts, 
 thorized to employ such experts and other assistants as 
 may be necessary. The Commission may appoint exam- 
 iners who shall have power to administer oaths, examine 
 witnesses, and take testimony. The Commission shall and'^*nlentOT:J! 
 make an inventory which shall list the property of every 
 common carrier subject to the provisions of this Act in 
 detail, and show the value thereof as hereinafter pro- 
 vided, and shall classify the physical property, as nearly 
 as practicable, in conformity with the classification of 
 expenditures for road and equipment, as prescribed by 
 the Interstate Commerce Commission. 
 
 First. In such investigation said Commission shall erS'°^usla""fOT 
 ascertain and report in detail as to each piece of property 
 Qwned or used by said common carrier for its purposes 
 
 common - c a r- 
 rier purposes. 
 
38 ACT TO REGULATE COMMERCE. 
 
 as a common carrier, the original cost to date, the cost 
 of reproduction new, the cost of reproduction less depre- 
 ciation, and an analysis of the methods by which these 
 several costs are obtained, and the reason for their differ- 
 
 er^y^^'^ ^^°^' ences, if any. The Commission shall in like manner as- 
 certain and report separately other values, and elements 
 of valxie, if any, of the property of such common carrier, 
 and an analysis of the methods of valuation employed, 
 and of the reasons for any differences between any such 
 value, and each of the foregoing cost values. 
 
 property?'^ "^^^^ Second. Such investigation and report shall state in 
 detail and separately from improvements the original 
 cost of all lands, rights of way, and terminals owned or 
 used for the purposes of a common carrier, and ascer- 
 tained as of the time of dedication to public use, and the 
 present value of the same, and separately the original 
 and present cost of condemnation and damages or of pur- 
 chase in excess of such original cost or present value. 
 
 tor''a?her''5ian Third. Such investigation and report shall show sepa- 
 
 rier'purposes'^" lately the property held for purposes other than those of 
 a common carrier, and the original cost and present value 
 of the same, together with an analysis of the methods of 
 valuation employed. 
 
 eaSlzaUoD*^°'^" Fourth. In ascertaining the original cost to date of 
 the property of such common carrier the Commission, in 
 addition to such other elements as it may deem necessary, 
 shall investigate and report upon the history and organi- 
 zation of the present and of any previous corporation 
 
 bonds''''^ *°"i operating such property; upon any increases or decreases 
 of stocks, bonds, or other securities, in any reorganization ; 
 upon moneys received by any such corporation by reason 
 of any issues of stocks, bonds, or other securities; upon 
 the syndicating, banking, and other financial arrange- 
 ments under which such issues were made and the ex- 
 ■^enditures"'^ pcnsc thereof; and upon the net and gross earnings of 
 such corporations; and shall also ascertain and report in 
 such detail as may be determined by the Commission upon 
 the expenditure of all moneys and the purposes for which 
 the same were expended. 
 
 United^sta^tes™ Fifth. The Commission shall ascertain and report the 
 amount and value of any aid, gift, grant of right of way, 
 or donation, made to any such common carrier, or to any 
 previous corporation operating such property, by the 
 Government of the United States or by a,ny State, county, 
 or municipal government, or by individuals, associations, 
 
ACT TO REGULATE COMMERCE!. t9 
 
 or corporations ; and it shall also ascertain and report the gr^^"®""*"** 
 grants of land to any such common carrier, or any pre- 
 vious corporation operating such property, by the Gov- 
 ernment of the United States, or by any State, county, 
 or. municipal government, and the amount of money de- 
 rived from the sale of any portion of such grants and 
 the value of the unsold portion thereof at the time ac- 
 quired and at the present time, also, the amount and value ^^^^ "by^^car- 
 of any concession and allowance made by such common '^'«'■• 
 carrier to the Government of the United States,, or to any 
 State, county, or municipal government in consideration 
 of such aid, gift, grant, or donation. 
 
 Except as herein otherwise provided, the Commission prSJe^-ure" ^ °^ 
 shall have power to prescribe the method of procedure 
 to be followed in the conduct of the investigation, the 
 form in which the results of the valuation shall be sub- 
 mitted, and the classification of the elements that consti- 
 tute the ascertained value, and such investigation shall 
 show the value of the property of every common carrier 
 as a whole and separately the value of its' property in 
 each of the several States and Territories and the District 
 of Columbia, clascified and in detail as herein required. 
 
 Such investigation shall be commenced within sixty a?d'°lport"of 
 days after the approval of this Act and shall be prose- investigation, 
 euted with diligence and thoroughness, and the result 
 thereof reported to Congress at the beginning of each 
 regular session thereafter until completed. 
 
 Every common carrier subject to the provisions of this aid°"'imfesti&a- 
 Act shall furnish to the Commission or its agents from *'°"- 
 time to time and as the Commission may require maps, 
 profiles, contracts, reports of engineers, and any other 
 documents, records, and papers, or copies of any or all 
 of the same, in aid of such investigation and determina- 
 tion of the value of the property of said common carrier, 
 and shall grant to all agents of the Commission free agents^toVrop- 
 access to its right of way, its property, and its accounts, ^rty. 
 records, and memoranda whenever and wherever re- 
 quested by any such duly authorized agent, and every 
 common carrier is hereby directed and required to coop- 
 erate with and aid the Commission in the work of the 
 valuation of its property in such further particulars and 
 to such extent as the Commission may require and direct, ^^^l^^"*- °' 
 and all rules and regulations made by the Commission for 
 the purpose of administering the provisions of this section 
 and section twenty of this Act shall have the full force 
 and effect of law. Unless otherwise ordered by the Com- 
 
40 ACT TO RISGULATE COMMERCE. 
 
 ti^"of ri"o?ds? mission, with the reasons therefor, the records and data of 
 the Commission shall be "open to the inspection and exami- 
 nation of the public. 
 
 exwnsion°'and Upon the Completion of the valuation herein provided 
 
 improvements, fgp ^j^g Commission shall thereafter in like manner keep 
 itself informed of all extensions and improvements or 
 other changes in the condition and value of the property 
 of all common carriers, and shall ascertain the value 
 thereof, and shall from time to time, revise and correct 
 its valuations, showing such revision and correction classi- 
 fied and as a whole and separately in each of the several 
 States and Territories and the District of Columbia, 
 
 c^|res°s.'^ '^ *° which Valuations, both original and corrected, shall be 
 tentative valuations and shall be reported to Congress at 
 the beginning of each regular session. 
 
 required™f^car" '^^ enable the Commission to make such changes and 
 
 '■*®''^- corrections in its valuations of each class of property, 
 
 every common carrier subject to the provisions of this 
 Act shall make such reports and furnish such information 
 as the Commission may require. 
 
 compilHotf °of Whenever the Commission shall have completed the 
 
 at?on."™ ^^^"' tentative valuation of the property of any common car- 
 rier, as herein directed, and before such valuation shall 
 become final, the Commission shall give notice by regis- 
 tered letter to the said carrier, the Attorney General of 
 the United States, the goveriior of any State in which the 
 property so valued is located, and to such additional par- 
 ties as the Commission may prescribe, stating the valua- 
 tion placed upon the several classes of property of said 
 carrier, and shall allow thirty days in which to file a 
 
 pratest"med "° Pi'otest of the Same with the Commission. If no protest 
 is filed within thirty days, said valuation shall become 
 final as of the date thereof. 
 
 prSests"^^ °* ■'■■^ notice of protest is filed the Commission shall fix a 
 time for hearing the same, and shall proceed as promptly 
 as may be to hear and consider any matter relative and 
 material thereto which may be presented in support of 
 Changes. ^ny such protest so filed as aforesaid. If after hearing 
 any protest of such tentative valuation under the provi- 
 sions of this Act the Commission shall be of the opinion 
 that its valuation should not become final, it shall make 
 such changes as may be necessary, and shall issue an order 
 making such corrected tentative valuation final as of the 
 Effect of final (ja^e thereof. All final valuations by the Commission and 
 
 valuation and •' 
 
 classification, ^hg classification thereof shall be published and shall be 
 
ACT TO REGULATE COMMERCE. 41 
 
 prima facie evidence of the value of the property in all 
 proceedings under the Act to regulate commerce as of 
 the date of the fixing thereof, and in all judicial proceed- 
 ings for the enforcement of the Act approved February- 
 fourth, eighteen hundred and eighty-seven, commonly 
 known as ' ' the Act to regulate commerce, ' ' and the various 
 Acts amendatory thereof, and in all judicial proceedings 
 brought to enjoin, set aside, annul, or suspend, in whole 
 or in part, any order of the Interstate Commerce Com- 
 mission. 
 
 If upon the trial of any action involving a final value dence®°* °* ^^'" 
 fixed by the Commission, evidence shall be introduced 
 regarding such value which is found by the court to be 
 diJfferent from that offered upon the hearing before the 
 Commission, or additional thereto and substantially 
 affecting said value, the court, before proceeding to render to'commiss1o°n! 
 judgment shall transmit a copy of such evidence to the 
 Commission, and shall stay further proceedings in said 
 action for such time as the court shall determine from 
 the date of such transmission. Upon the receipt of such commL'sion ° ' 
 evidence the Commission shall consider the same and 
 may fix a final value different from the one fixed in the 
 first instance, and may alter, modify, amend or rescind 
 any order which it has made involving said final value, 
 and shall report its action thereon to said court within 
 the time fixed by the court. If the Commission shall alter, ^^ ^derf ''^"°" 
 modify, or amend its order, such altered, modified, or 
 amended order shall take the place of the original order 
 complained of and judgment shall be rendered thereon 
 as though made by the Commission in the first instance. 
 If the original order shall not be rescinded or changed orSnir^order' 
 by the Commission, judgment shall be rendered upon such 
 original order. 
 
 The provisions of this section shall apply to receivers recewers^'''^ *^° 
 of carriers and operating trustees. In case of failure or 
 refusal on the part of any carrier, receiver, or trustee to 
 comply with all the requirements of this section and in 
 the manner prescribed by the Commission such carrier, 
 receiver, or trustee shall forfeit to the United States the I'enaity. 
 sum of five hundred dollars for each such offense and for 
 each and every day of the continuance of such offense, 
 such forfeitures to be recoverable in the same manner as 
 other forfeitures provided for in section sixteen of the 
 Act to regulate commerce. 
 
 That the district courts of the United States shall have of^distrVS" 
 jurisdiction, upon the application of the Attorney General ^e'i''comSiiin?e 
 
42 
 
 ACT TO REGULATE COMMERCE. 
 
 alleging a failure to comply with or a violation of any 
 of the provisions of this section by any common carrier, 
 to issue a writ or writs of mandamus commanding such 
 common carrier to comply with the provisions of this 
 section. 
 A^t"of'Tu^tt ^t ^^^^^ b^ the duty of every common carrier by rail- 
 1, 1914. j,Qa^ whose property is being valued under the Act of 
 
 March first, nineteen hundred and thirteen, to transport 
 the engineers, field parties, and other employees of the 
 United States who are actually engaged in making sur- 
 veys and other examination of the physical property of 
 said carrier necessary to execute said Act from point to 
 point on said railroad as may be reasonably required by 
 them in the actual discharge of their duties; and, also, 
 to move from point to point and store at such points as 
 may be reasonably required the cars of the United States 
 which are being used to house and maintain said em- 
 ployees;' and, also, to carry the supplies necessary to 
 maintain said employees and the other property of the 
 United States actually used on said railroad in said work 
 of valuation. The service above required shall be re- 
 garded as a special service and shall be rendered under 
 such forms and regulations and for such reasonable com- 
 pensation as may be prescribed by the Interstate Com- 
 merce Commission and as will insure an accurate record 
 and account of the service rendered by the railroad, and 
 such evidence of transportation, bills of lading, and so 
 forth, shall be furnished to the Commission as may from 
 time to time be required by the Commission. 
 may°r'Sauf ?e ^^°- ^^- ^-^^ amended June 29, 1906, February 25, 1909, 
 an"d^prel??ibe '^"^^ ^^> ^^^^' ^"''Tch 4, 1915, and August 9, 1916.) 
 ^e?*same '"^''' '^^^^ ^^^ Commission is hereby authorized to require 
 annual reports from all common carriers subject to 
 the provisions of this Act, and from the owners of 
 all railroads engaged in interstate commerce as de- 
 fined in this Act, to prescribe the manner in which such 
 reports shall be made, and to require from such car- 
 riers specific answers to all questions upon which the 
 ofwSriersshau Commission may need information. Such annual reports 
 contain. shall show in detail the amount of capital stock issued, 
 
 the amounts paid therefor, and the manner of pajTnent 
 for the same; the dividends paid, the surplus fund, if 
 any, and the number of stockholders; the funded and 
 floating debts and the interest paid thereon; the cost and 
 value of the carrier's property, franchises, and equip- 
 ments; the number of employees and the salaries paid 
 each class; the amounts expended for improvements each 
 year, how expended, and the ^h^^n^^ay nf annh imnrove- 
 
ACT TO ebgulate commerce. 43 
 
 ments; the earnings and receipts from eacli branch of 
 
 business and from all sources; the operating and other 
 
 expenses ; the balances of profit and loss ; and a complete 
 
 exhibit of the financial operations of the carrier each 
 
 year, including an annual balance sheet. Such reports may prescribe 
 
 shall also contain such information in relation to rates or "f accountr^™ 
 
 regulations concerning fares or freights, or agreements, 
 
 arrangements, or contracts affecting the same as the 
 
 Commission may require; and the Commission may, in 
 
 its discretion, for the purpose of enabling it the better to 
 
 carry out the purposes of this Act, prescribe a period of 
 
 time within which all common carriers subject to the 
 
 provisions of this Act shall have, as near as may be, a 
 
 uniform system of accounts, and the manner in which 
 
 such accounts shall be kept. 
 
 Said detailed reports shall contain all the required po^te"to^be fliei 
 statistics for the period of twelve months ending on the ^jj^*^ by '"scp- 
 thirtieth day of June in each year, or on the thirty-first el™h year" °* 
 day of December in each year if the Commission by order 
 substitute that period for the year ending June thirtieth, 
 and shall be made out under oath and filed with the Com- 
 mission at its office in Washington within three months 
 after the close of the year for which the report is made, 
 unless additional time be granted in any case by the mS^°£^Slt*ad" 
 Commission ; and if any carrier, person, or corporation d'tionai "«>«. 
 subject to the provisions of this Act shall fail to make and 
 file said annual reports within the time above specified, 
 or within the time extended by the Commission, for mak- 
 ing and filing the same, or shall fail to make specific 
 answer to any question authorized by the provisions of 
 this section within thirty days from the time it is lawfully 
 required so to do, such party shall forfeit to the United 
 States the sum of one hundred dollars for each and every Penalty, 
 day it shall continue to be in default with respect thereto. 
 The Commission shall also have authority by general or ^J^°^^ re- 
 special orders to require said carriers, or any of them, to p""*". 
 file monthly reports of earnings and expenses, and to file 
 periodical or special, or both periodical and special, re- 
 ports concerning any matters about which the Commis- 
 sion is authorized or required by this or any other law to 
 inquire or to keep itself informed or which it is required 
 to enforce; and such periodical or special reports shall 
 be under oath whenever the Commission so requires; and 
 if any such carrier shall fail to make and file any such 
 periodical or special report within the time fixed by the 
 Commission, it shall be subject to the forfeitures last 
 above provided. 
 
44 ACT TO REGULATE COMMERCE. 
 
 fo^euin-es^ °' ^^^^ forfeitures shall be recovered in the manner pro- 
 vided for the recovery of forfeitures under the provisions 
 of this Act. 
 nua1:**reports" '^^^ '^^^^ required by this section may be taken before 
 how taken. ^j^^y pgpgon authorized to administer an oath by the laws 
 
 of the State in which the same is taken. 
 m^°^^icribe "^^^ Commission may, in its discretion, prescribe the 
 counts, records" ^ o^i^^s of any and all accounts, records, and memoranda to 
 r "nda aSd Sive ^® ^^V^ hy carriers subject to the provisions of this Act, 
 access thereto, including the accounts, records, and memoranda of the 
 movement of traffic as well as the receipts and expendi- 
 tures of moneys. The Commission shall at all times have 
 access to all accounts, records, and memoranda kept by 
 keep"o^ othir Carriers subject to this Act, and it shall be unlawful for 
 t i™""e^ p*e - ^^^^ carriers to keep any other accounts, records, or mem- 
 comiius^sion^^ oranda than those prescribed or approved by the Com- 
 mission, and it may employ special agents or examiners, 
 m^^enTiff o"? ^^^° shall havc authority under the order of the Commis- 
 fnlS^^ to^^^^- ^^^^ *° inspect and examine any and all accounts, records, 
 and^'records"'^ ^^^ memoranda kept by such carriers. This provision 
 shall apply to receivers of carriers and operating trustees. 
 of^"a?Her"Ty ^^ ^^^^ ^^ failure or refusal on the part of any such 
 faifure"to keep Carrier, receiver, or trustee to keep such accounts, records, 
 records as*^ pre- ^^^ memoranda on the books and in the manner pre- 
 comm^ssion ''or scribcd by the Commission, or to submit such accounts, 
 spe«ion° there- I'^cords, and memoranda as are kept to the inspection of 
 "'• the Commission or any of its authorized agents or exam- 
 
 iners, such carrier, receiver, or trustee shall forfeit to the 
 United States the sum of five hundred dollars for each 
 such offense and for each and every day of the continu- 
 ance of such offense, such forfeitures to be recoverable in 
 the same manner as other forfeitures provided for in 
 this Act. 
 of^^rs'on^for -^^^ person who shall willfully make any false entry in 
 false entry in t^g accounts of any book of accounts or in any record or 
 
 cLCcouiils Or rsc™ 
 
 fauon °'of'"'acI memoranda kept by a carrier, or who shall willfully de- 
 o°r"d? or tVr st^°y> mutilate, alter, or by any other means or device 
 keeping other falsify the record of any such account, record, or memo- 
 scribed p'l'n^ randa, or who shall willfully neglect or fail to make full, 
 or imprison- true, and Correct entries in such accounts, records, or 
 
 ment or ooth. ' ... 
 
 memoranda of all facts and transactions appertaining to 
 
 the carrier's business, or shall keep any other accounts, 
 records, or memoranda than those prescribed or approved 
 by the Commission, shall be deemed guilty of a misde- 
 meanor, and shall be subject, upon conviction in any court 
 of the United States of competent jurisdiction, to a fine 
 of not less than one thousand dollars nor more than five 
 thousand dollars or imprisonment for a term not less than 
 
ACT TO REGULATE COMMERCE. 45 
 
 one year nor more than three j^ears, or both such fine and 
 imprisonment: Provided, That the Commission may in its of'^^'p^ebruary' 
 discretion issue orders specifying such operating, account- ^^t!"mmission 
 ing, or financial papers, records, books, blanks, tickets, ^f ? S^c™ 'i' o^n 
 stubs, or documents of carriers which may, after a reason- °^ records. 
 able time, be destroyed, and prescribing the length of time 
 such books, papers, or documents shall be preserved. 
 
 Any examiner who divulges any fact or information of^specfai'"ex- 
 which may come to his knowledge during the course of vSgerr^fo^r- 
 such examination, except in so far as he may be directed ^thority!'pine 
 by the Commission or by a court or judge thereof, shall ment or'both"" 
 be subject, upon conviction in any court of the United 
 States of competent jurisdiction, to a fine of not more 
 than five thousand dollars or imprisonment for a term 
 not exceeding two years, or both. 
 
 That the circuit and district courts of the United States cou?ts*mly'''f- 
 shall have jurisdiction, upon the application of the Attor- to^ompef co'm- 
 ney General of the United States at the request of the Provlsfonr'of 
 Commission, alleging a failure to comply with or a viola- •*^''*- 
 tion of any of the provisions of said Act to regulate com- 
 merce or of any Act supplementary thereto or amendatory 
 thereof by any common carrier, to issue a writ or writs of 
 mandamus commanding such common carrier to comply 
 with the provisions of said Acts, or any of them. 
 
 And to carry out and give effect to the provisions of may^'e^ifio'y 
 said Acts, or any of them, the Commission is hereby au- fnlri^V 0*^^? e*- 
 thorized to employ special agents or examiners who shall '^^^^^ evidence, 
 have power to administer oaths, examine witnesses, and 
 receive evidence. 
 
 That any common carrier, railroad, or transportation amendment' "s 
 company subject to the provisions of this Act receiving amended, 
 property for transportation from a point in one State 
 or Territory or the District of Columbia to a point in 
 another State, Territory, District of Columbia, or from caSitr to Tsiul 
 any point in the United States to a point in an adjacent ''"i °* lading, 
 foreign country shall issue a receipt or bill of lading hoidlr foV^an? 
 therefor, and shall be liable to the lawful holder thereof i°®»- 
 for any loss, damage, or injury to such property caused 
 by it or by any common carrier, railroad, or transporta- 
 tion company to which such property may be delivered 
 or over whose line or lines such property may pass within 
 the United States or within an adjacent foreign country 
 when transported on a through bill of lading, and no 
 contract, receipt, rule, regulation, or other limitation of ^ Jj^°^ ^''^f "J^'n^ 
 any character whatsoever, shall exempt such common tract. 
 
46 ACT TO REGULATE COMMERCE. 
 
 carrier, railroad, or transportation company from the 
 fuu'actuS fos'*s.^^^^^^^*y hereby imposed; and any such common carrier, 
 railroad, or transportation company so receiving prop- 
 erty for transportation from a point in one State, Terri- 
 tory, or the District of Columbia to a point in another 
 State or Territory, or from a point in a State or Territory 
 to a point in the District of Columbia, or from any point 
 in the United States to a point in an adjacent foreign 
 country, or for transportation wholly within a Territory 
 shall be liable to the lawful holder of said receipt or bill 
 of lading or to any party entitled to recover thereon, 
 whether such receipt or bill of lading has been issued tir 
 not, for the full actual loss, damage, or injury to such 
 property caused by it or by any such common carrier, 
 railroad, or transportation company to which such prop- 
 erty may be delivered or over whose line or lines such 
 property may pass within the United States or within 
 an adjacent foreign country when transported on a 
 through bill of lading, notwithstanding any limitation of 
 void''""**'" ° ^ liability or limitation of the amount of recovery or repre- 
 sentation or agreement as to value in any such receipt or 
 bill of lading, or in any contract, rule, regulation, or in 
 any tariff filed with the Interstate Commerce Commis- 
 sion ; and any such limitation, without respect to the man- 
 ner or form in which it is sought to be made is hereby 
 declared to be unlawful and void: Provided, however, 
 That the provisions hereof respecting liability for full 
 actual loss, damage, or injury, notwithstanding any lim- 
 itation of liability or recovery or representation or agree- 
 ment or release as to value, and declaring any such limi- 
 tation to be unlawful and void, shall not apply, first, to 
 Certain pro- baggage carried on passenger trains or boats, or trains or 
 SYn&T^ "^"live t»oats carrying passengers; second, to property, except 
 atock. ordinary live stock, received for transportation concern- 
 
 ing which the carrier shall have been or shall hereafter be 
 expressly authorized or required by order of the Inter- 
 state Commerce Commission to establish and maintain 
 rates dependent upon the value declared in writing hj 
 the shipper or agreed upon in writing as the released 
 value of the property, in which case such declaration or 
 R a to s a e- agreement shall have no other effect than to limit liability 
 
 pendent upon° 
 
 value. and recovery to an amount not exceeding the value so 
 
 declared or released, and shall not, so far as relates to 
 values, be held to be a violation of section ten of this Act 
 to regulate commerce, as amended; and any tariff sched- 
 
ACT TO REGULATE COMMERCE. 47 
 
 ule which may be filed with the Commission pursuant to 
 such order shall contain specific reference thereto and 
 may establish rates varying with the value so declared 
 or agreed upon; and the Commission is hereby empow- 
 ered to make such order in cases where rates dependent 
 upon and varying with declared or agreed values would, 
 in its opinion, be just and reasonable under the circum- 
 stances and conditions surrounding the transportation. 
 The term " ordinary live stock " shall include all cattle, Eeflnition. 
 swine, sheep, goats, horses, and mules, except such as are 
 chiefly valuable for breeding, racing, show purposes, or 
 other special uses: Provided further, That nothing in , 
 this section shall deprive any holder of such receipt or 
 bill of lading of any remedy or right of action which he 
 has under the existing law: Provided further , That it exSifng^aw^*"" 
 shall be unlawful for any such common carrier to provide 
 by rule, contract, regulation, or otherwise a shorter jnj'^aims"^ "'" 
 period for giving notice of claims than ninety days and 
 for the filing of claims for a shorter period than four 
 months, and for the institution of suits than two years: 
 Provided, however, That if the loss, damage, or injury cak?essness.^'' 
 complained of was due to delay or damage while being 
 loaded or unloaded, or damaged in transit by careless- 
 ness or negligence, then no notice of claim nor filing of 
 claim shall be required as a condition precedent to re- 
 covery. 
 
 That the common carrier, railroad, or transportation may''have"re- 
 company issuing such receipt or bill of lading shall be ^InfeT respon" 
 entitled to recover from the common carrier, railroad, or oJ.''damSge. '°*^ 
 transportation company on whose line the loss, damage, 
 or injury shall have been sustained the amount of such 
 loss, damage, or injury as it may be required to pay to 
 the owners of such property, as may be evidenced by any 
 receipt, judgment, or transcript thereof. 
 
 No suit brought in any State court of competent juris- of'janSal^^ao! 
 diction against a railroad company, or other corporation, i^^*- 
 or person, engaged in and carrying on the business of a 
 common carrier, to recover damages for delay, loss of, 
 or injury to property received for transportation by such 
 common carrier under section twenty of the Act to regu- 
 late commerce, approved February fourth, eighteen hun- 
 dred and eighty-seven, as amended June twenty-ninth, 
 nineteen hundred and six, April thirteenth, nineteen hun- 
 dred and eight, February twenty-fifth, nineteen hundred 
 and nine, and June eighteenth, nineteen hundred and 
 
48 ACT TO REGULATE COMMERCE. 
 
 ten, snail be removed to any court of the United States 
 where the matter in controversy does not exceed, exclu- 
 sive of interest and costs, the sum or value of $3,000. 
 port"""o*f the S^c- 21. i^s amended March 2, 1889.) That the Com- 
 congressi°° ^° mission shall, on or before the first day of December in 
 each year, make a report, v^hich shall be transmitted to 
 Congress, and copies of which shall be distributed as are 
 the other reports transmitted to Congress. This report 
 shall contain such information and data collected by the 
 Commission as may be considered of value in the determi- 
 nation of questions connected with the regulation of com- 
 merce, together with such recommendations as to addi- 
 tional legislation relating thereto as the Commission may 
 deem necessary; and the names and compensation of the 
 persons employed by said Commission, 
 pr^plrfy ^ tha't ^^^- ^^^ (^* amended March 2, 1889, and February 8, 
 f?te o? '"at^re^ 1895.) [See section 1, par. 5.] That nothing in this 
 duced rates. ^g^ shall prevent the carriage, storage, or handling of 
 property free or at reduced rates for the United States, 
 State, or municipal governments, or for charitable pur- 
 poses, or to or from fairs and expositions for exhibition 
 thereat, or the free carriage of destitute and homeless 
 persons transported by charitable societies, and the neces- 
 sary agents employed in such transportation, or the 
 c ^"Itl^A ^oT issuance of mileage, excursion, or commutation passenger 
 p°^rs"e'n&er tickets; nothing in this Act shall be construed to prohibit 
 tickets. ^j^y common carrier from giving reduced rates to minis- 
 
 ters of religion, or to municipal governments for the 
 transportation of indigent persons, or to inmates of the 
 National Homes or State Homes for Disabled Volunteer 
 Soldiers, and of Soldiers' and Sailors' Orphan Homes, in- 
 cluding those about to enter and those returning home 
 fre^^^t?anspor- S'^tcr discharge, under arrangements with the boards of 
 cers°"and em- managers of Said homes ; nothing in this Act shall be con- 
 ?'o a^d^ compa- strued to prevent railroads from giving free carriage to 
 "'«^- their own officers and employees, or to prevent the princi- 
 
 pal officers of any railroad company or companies from 
 exchanging passes or tickets with other railroad com- 
 panies for their officers and employees; [* * * nothing 
 gust^'29°^i9i6"" ™- *^® ^^^ # * * giiall be construed to prohibit any 
 Provisions of common Carrier from giving reduced rates for members 
 dition'^to'?eme- °^ National Guard organizations traveling to and from 
 common""iaw* joint encampments with the Regular Army. — 39 Stat. L., 
 tion^'"not"'af- ^^^] ' ^^^ nothing in this Act contained shall in any 
 fected by Act. -y^ay abridge or alter the remedies now existing at common 
 
ACT TO REGULATE COMMERCE 49 
 
 law or by statute, but the provisions of this Act are in 
 addition to such remedies: Provided, That no pending 
 litigation shall in any way be affected by this Act: Pro- 
 vided further, That nothing in this Act shall prevent the 
 issuance of joint interchangeable five-thousand-mile tick- c ifa'S g e 'aif le 
 ets, with special privileges as to the amount of free bag- m^fe' ti^c k^e"*s" 
 gage that may be carried under mileage tickets of one bSigage"^ ^^^^ 
 thousand or more miles. But before any common carrier, 
 subject to the provisions of this Act, shall issue any such 
 joint interchangeable mileage tickets with special privi- 
 leges, as aforesaicij it shall file with the Interstate Com- 
 merce Commission copies of the joint tariffs of rates, 
 fares, or charges on which such joint interchangeable 
 mileage tickets are to be based, together with specifica- 
 tions of the amount of free baggage permitted to be 
 carried under such tickets, in the same manner as com- 
 mon carriers are required to do with regard to other 
 joint rates by section six of this Act; and all the pro- 
 visions of said section six relating to joint rates, fares, pubUshldfmed! 
 and charges shall be observed by said common car- ^"^ observed, 
 riers and enforced by the Interstate Commerce Com- 
 mission as fully with regard to such joint interchange- 
 able mileage tickets as " with regard to other joint 
 rates, fares, and charges referred to in said section six. 
 It shall be unlawful for any common carrier that has 
 issued or authorized to be issued any such joint inter- 
 changeable mileage tickets to demand, collect, or receive 
 from any person or persons a greater or less compensa- 
 tion for transportation of persons or baggage under such 
 joint interchangeable mileage tickets than that required 
 by the rate, fare, or charge specified in the copies of the 
 joint tariff of rates, fares, or charges filed with the Com- 
 mission in force at the time. The provisions of section Penalties, 
 ten of this Act shall apply to any violation of the re- 
 quirements of this proviso. 
 
 Sec. 23. {Added March 2, 1889.) That the circuit and cou?t"^to^com- 
 district courts of the United States shall have jurisdiction "l"^ m o^v e^- 
 upon the relation of any person or persons, firm, or corpo- thl'^furnShing 
 ration, alleging such violation by a common carrier, of other*^h-anspor- 
 any of the provisions of the Act to which this is a supple- ^^^^^ '■^ciii- 
 ment and aU Acts amendatory thereof, as prevents the 
 relator from having interstate traffic moved by said com- 
 mon carrier at the same rates as are charged, or upon 
 terms or conditions as favorable at those given by said 
 64823°— 17 4 
 
50 ACT TO REGULATE COMMEBCE. 
 
 common carrier for like traffic under similar conditions to 
 any other shipper, to issue a writ or writs of mandamus 
 against said common carrier, commanding such common 
 carrier to move and transport the traffic, or to furnish cars 
 or other facilities for transportation for the party apply- 
 ing for the writ: Provided, That if any question of fact 
 as to the proper compensation to the common carrier for 
 the service to be enforced by the writ is raised by the 
 pleadings, the writ of peremptory mandamus may issue, 
 notwithstanding such question of fact is undetermined, 
 upon such terms as to security, payment of money into the 
 court, or otherwise, as the court may think proper, pend- 
 cumSiTtfve ^ '^ ™S ^^^ determination of the question of fact : Provided, 
 That the remedy hereby given by writ of mandamus shall 
 be cumulative, and shall not be held to exclude or inter- 
 fere with other remedies provided by this Act or the Act 
 to which it is a supplement. 
 to*^?on^ir'of ^^^- ^*- (^<^'^ed June 29, 1906.) That the Interstate 
 bers -^ t e 1^™' Commerce Commission is hereby enlarged so as to consist 
 salaries. gf geven members with terms of seven years, and each 
 
 shall receive ten thousand dollars compensation annually. 
 of^^mmlssioS- '^^® qualifications of the Commissioners and the manner 
 ^•■^^ of the payment of their salaries shall be as already pro- 
 
 vided by law. Such enlargement of the Conunission shall 
 be accomplished through appointment by the President, 
 by and with the advice and consent of the Senate, of two 
 additional Interstate Commerce Commissioners, one for a 
 term expiring December thirty-first, nineteen hundred 
 and eleven, one for a term expiring December thirty-first, 
 nineteen hundred and twelve. The terms of the present 
 Commissioners, or of any successor appointed to fill a 
 vacancy caused by the death or resignation of any of the 
 present Commissioners, shall expire as heretofore pro- 
 vided by law. Their successors and the successors of the 
 additional Commissioners herein provided for shaU be ap- 
 pointed for the full terms of seven years, except that any 
 person appointed to fill a vacancy shall be appointed only 
 for the unexpired term of the Commissioner whom he 
 shall succeed. Not more than four Commissioners shall 
 Existingiaws \,q appointed from the same political party, 
 ^"'^^s'and^ro- {Additional provisions in Act of June 29, 1906.) (Sec. 
 duction^of^ev^- 9.) That all existing laws relating to the attendance of 
 
 bie in proceed- witnesses and the production of evidence and the com- 
 ings under this ^ 
 
 Act. pelling of testimony under the Act to regulate commerce 
 
ACT TO REGULATE COMMERCE. 51 
 
 and all Acts amendatory thereof shall apply to any and 
 all proceedings and hearings under this Act. 
 
 (Sec. 10.) That all laws and parts of laws in conflict iaws°?epeaiid ^ 
 with the provisions of this Act are hereby repealed; taut 
 the amendments herein provided for shall not affect not^To^^^ffect 
 causes now pending in courts of the United States, but pending causes 
 
 ^ 'in court. 
 
 such causes shall be prosecuted to a conclusion in the 
 manner heretofore provided by law. 
 
 (Sec. 11.) That this Act shall take effect and be in f ec^|." ^"^^ ^*" 
 force from and after its passage. 
 
 Joint resolution of June 30, 1906, provides : ' ' That the ;„ J™f?ect ^Ix- 
 Act entitled 'An Act to amend an Act entitled "An Act to ^^f,^^u^^ ^Ys 
 regulate Commerce," approved February 4, 1887, and all ^^°^'>- 
 Acts amendatory thereof, and to enlarge the powers of 
 the Interstate Commerce Commission,' shall take effect 
 and be in force sixty days after its approval by the Presi- 
 dent of the United States." 
 
 {Additional provisions in Act of June 18, 1910.) (Sec. a*^^s''i®'"n'^fe 
 6, par. 2.) It shall be the duty of every common carrier ^/^ s Vi n g" 
 subject to th« provisions of this Act, within sixty days poges^of serv- 
 after the taking effect of this Act, to designate in writing '<=«■ 
 an agent in the city of Washington, District of Columbia, 
 upon whom service of all notices and processes may be 
 made for and on behalf of said common carrier in any 
 proceeding or suit pending before the Interstate Com- 
 merce Commission or before said Commerce Court, and 
 to file such designation in the office of the secretary of the 
 Interstate Commerce Commission, which designation may 
 from time to time be changed by like writing similarly 
 filed; and thereupon service of all notices and processes guch'ajents °" 
 may be made upon such common carrier by leaving a 
 copy thereof with such designated agent at his office or 
 usual place of residence in the city of Washington, with 
 like effect as if made personally upon such common car- 
 rier, and in default of such designation of such agent, 
 service of any notice or other process in any proceeding 
 before said Interstate Commerce Commission or Com- 
 merce Court may be made by posting such notice or 
 process in the office of the secretary of the Interstate 
 Commerce Commission. 
 
 (Sec. 15.) That nothing in this Act contained shall caL^"^'"^ 
 undo or impair any proceedings heretofore taken by or 
 before the Interstate Commerce Commission or any of 
 the acts of said Commission; and in any cases, proceed- 
 
52 DISTRICT COURT JURISDICTION ACT. 
 
 ings, or matters now pending before it, the Commission 
 may exercise any of the powers hereby conferred upon it, 
 biiitfes""^ "*' ^® would be proper in cases, proceedings, or matters here- 
 after initiated and nothing in this Act contained shall 
 operate to release or affect any obligation, liability, pen- 
 alty, or forfeiture heretofore existing against or incurred 
 by any person, corporation, or association. 
 feSi^l?Auguft (Sec. 18.) That this Act shall take effect arid be in 
 17, 1910). force from and after the expiration of sixty days after 
 
 its passage, except as to sections twelve and sixteen, which 
 sections shall take effect and be in force immediately. 
 
 Public, No. 41, approved February 4, 1887, as amended 
 by Public, No. 125, approved March 2, 1889; Public, 
 No. 72, approved February 10, 1891 ; Public, No. 38, ap- 
 proved February 8, 1895 ; Public, No. 337, approved June 
 29, 1906; Public Res., No. 47, approved June 30, 1906; 
 Public, No. 95, approved April 13, 1908 ; Public, No. 262, 
 approved February 25, 1909; Public, No. 218, approved 
 June 18, 1910 ; Public, No. 337, approved August 24, 1912 ; 
 Public, No. 400, approved March 1, 1913 ; Public, No. 48, 
 approved January 20, 1914; Public, No. 161, approved 
 August 1, 1914 ; Public, No. 325, approved March 4, 1915 ; 
 Public, No. 183, approved August 9, 1916; and Public, 
 No. 241, approved August 29, 1916. 
 
 District Court Jurisdiction Act. 
 
 AN ACT Making appropriations to supply urgent deficiencies in 
 appropriations for the fiscal year nineteen hundred and thirteen, 
 and for other purposes. 
 
 « * « 4» * 
 
 The Commerce Court, created and established by the 
 Act entitled "An Act to create a Commerce Court and to 
 amend the Act entitled 'An Act to regulate commerce,' 
 cfur^^aboi- ^PProvcd February fourth, eighteen hundred and eighty- 
 is^^^- seven, as heretofore amended, and for other purposes," 
 
 approved June eighteenth, nineteen hundred and ten, is 
 abolished from and after December thirty-first, nineteen 
 hundred and thirteen, and the jurisdiction vested in said 
 Commerce Court by said Act is transferred to and vested 
 in the several district courts of the United States, and all 
 Acts or parts of Acts in so far as they relate to the estab- 
 lishment of the Commerce Court are repealed. Nothing 
 herein contained shall be deemed to affect the tenure of 
 any of the judges now acting as circuit judges by ap- 
 
DISTRICT COURT JURISDICTION ACT. 53 
 
 pointment under the terms of said Act, but such judges 
 
 shall continue to act under assignment, as in the said 
 
 Act provided, as judges of the district courts and circuit ,„ ^ d Ts t'r '/c" 
 
 courts of appeals; and in the event of and on the death, courts. 
 
 resignation, or removal from office of any of such judges, ^^Jenure of of- 
 
 his office is hereby abolished and no successor to him shall 
 
 be appointed. 
 
 The venue of any suit hereafter brought to enforce, suits^on"o1-de°rs 
 suspend, or set aside, in whole or in part, any order of co^mme^T^ct 
 the Interstate Commerce Commission shall be in the judi- commission. 
 cial district wherein is the residence of the party or any 
 of the parties upon whose petition the order was made, 
 except that where the order does not relate to transporta- 
 tion or is not made upon the petition of any party the 
 venue shall be in the district where the matter complained 
 of in the petition before the Commission arises, and ex- 
 cept that where the order does not relate either to trans- 
 portation or to a matter so complained of before the Com- 
 mission the matter covered by the order shall be deemed 
 to arise in the district where one of the petitioners in 
 court has either its principal office or its principal operat- flce''^'"°'P*' °*" 
 ing office. In case such transportation relates to a 
 through shipment the term " destination " shall be con- 
 strued as meaning final destination of such shipment. 
 
 The procedure in the district courts in respect to cases ais^ricTcou?ts" 
 of which jurisdiction is conferred upon them by this Act 
 shall be the same as that heretofore prevailing in the 
 Commerce Court. The orders, writs, and processes of 
 the district courts may in these cases run, be served, 
 and be returnable anywhere in the United States; and 
 the right of appeal from the district courts in such cases 
 shall be the same as the right of appeal heretofore pre- 
 vailing under existing law from the Commerce Court. 
 No interlocutory injunction suspending or restraining injunction!'*"'^'' 
 the enforcement, operation, or execution of, or setting 
 aside, in whole or in part, any order made or entered by 
 the Interstate Commerce Commission shall be issued or 
 granted by any district court of the United States, or 
 by any judge thereof, or by any circuit judge acting as 
 district judge, unless the application for the same shall 
 be presented to a circuit or district judge, and shall be 
 heard and determined by three judges, of whom at least 
 one shall be a circuit judge, and unless a majority of said 
 three judges shall concur in granting such application. 
 When such application as aforesaid is presented to a 
 
54 
 
 DISTRICT COURT JURISDICTION ACT. 
 
 Notice. 
 
 judge, he shall immediately call to his assistance to hear 
 and determine the application two other judges. Said 
 application shall not be heard or determined before at 
 least five days' notice of the hearing has been given to 
 the Interstate Commerce Commission, to the Attorney 
 General of the United States, and to such other persons 
 as may be defendants in the suit : Provided, That in cases 
 where irreparable damage would otherwise ensue to the 
 petitioner, a majority of said three judges concurring, 
 may, on hearing, after not less than three days' notice to 
 the Interstate Commerce Commission and the Attorney 
 
 stay^ ™ " "'^^'^'^ General, allow a temporary stay or suspension, in whole 
 or in part, of the operation of the order of the Interstate 
 Commerce Commission for not more than sixty days from 
 the date of the order of said judges pending the applica- 
 tion for the order or injunction, in which case the said 
 order shall contain a specific finding, based upon evidence 
 
 dama&l"^'^^'''^ submitted to the judges making the order and identified 
 by reference thereto, that such irreparable damage would 
 result to the petitioner and specifying the nature of the 
 damage. The said judges may, at the time of hearing 
 such application, upon a like finding, continue the tem- 
 porary stay or suspension in whole or in part until 
 Hearing. decision upon the application; The hearing upon such 
 application for an interlocutory injunction shall be given 
 precedence and shall be in every way expedited and be 
 assigned for a hearing at the earliest practicable day after 
 the expiration of the notice hereinbefore provided for. 
 Appeal. j^n appeal may be taken direct to the Supreme Court of 
 
 the United States from the order granting or denying, 
 after notice and hearing, an interlocutory injunction, in 
 such case if such appeal be taken within thirty days after 
 the order, in respect to which complaint is made, is 
 granted or refused; and upon the final hearing of any 
 suit brought to suspend or set aside, in whole or in part, 
 any order of said Commission the same requirement as to 
 judges and the same procedure as to expedition and ap- 
 Finaijudr- pgal shall apply. A final judgment or decree of the dis- 
 trict court may be reviewed by the Supreme Court of the 
 United States if appeal to the Supreme Court be taken 
 by an aggrieved party within sixty days after the entry 
 of such final judgment or decree, and such appeals may 
 be taken in like manner as appeals are taken under exist- 
 ing law in equity cases. And in such case the notice re- 
 quired shall be served upon the defendants in the case 
 
DISTBICT COURT JURISDICTION ACT. 55 
 
 and upon the attorney general of the State. All cases i„^^^®^ p®"*^" 
 pending in the Commerce Court at the date of the passage 
 of this Act shall be deemed pending in and be trans- 
 ferred forthwith to said district courts except cases which 
 may previously have been submitted to that court for 
 final decree and the latter to be transferred to the district 
 courts if not decided by the Commerce Court before 
 December first, nineteen hundred and thirteen, and all 
 cases wherein injunctions or other orders or decrees, 
 mandatory or otherwise, have been directed or entered 
 prior to the abolition of the said court shall be transferred 
 forthwith to said district courts, which shall have jurisdic- 
 tion to proceed therewith and to enforce said injunctions, 
 orders, or decrees. Each of said cases and all the records, to '^'if ?s'f rTc t 
 papers, and proceedings shall be transferred to the district courts, 
 court wherein it might have been filed at the time it was 
 filed in the Commerce Court if this Act had then been in 
 effect; and if it might have been filed in any one of two 
 or more district courts it shall be transferred to that one 
 of said dsitrict courts which may be designated by the 
 petitioner or petitioners in said case, or, upon failure of 
 said petitioners to act in the premises within thirty days 
 after the passage of this -Act, to such one of said district 
 courts as may be designated by the judges of the Com- 
 merce Court. The judges of the Commerce Court shall 
 have authority, and are hereby directed, to make any and 
 all orders and to take any other action necessary to trans- 
 fer as aforesaid the cases and all the records, papers, and 
 proceedings then pending in the Commerce Court to said 
 district courts. All administrative books, dockets, files, 
 and all papers of the Commerce Court not transferred as 
 part of the record of any particular case shall be lodged 
 in the Department of Justice. All furniture, carpets, 
 and other property of the Commerce Court is turned over 
 to the Department of Justice and the Attorney General 
 is authorized to supply such portion thereof as in his 
 judgment may be proper and necessary to the United 
 States Board of Mediation and Coiiciliation. 
 
 Any case hereafter remanded from the Supreme Court co "A''to'?e- 
 which, but for the passage of this Act, would have been "^a"^- 
 remanded to the Commerce Court, shall be remanded to 
 a district court, designated by the Supreme Court, 
 wherein it might have been instituted at the time it was 
 instituted in the Commerce Court if this Act had then 
 been in effect, and thereafter such district court shall take 
 
56 COMPULSORY TESTIMONY ACT. 
 
 all necessary and proper proceedings in such case in ac- 
 cordance with law and such mandate, order, or decree 
 therein as may be made by said Supreme Court. 
 Repeal. ^i i^ws or parts of laws inconsistent with the fore- 
 
 going provisions relating to the Commerce Court, are 
 
 repealed. 
 
 ***** 
 
 Public, No. 32, approved October 22, 1913. 
 
 Compulsory Testimony Act. 
 
 AN ACT In relation to testimony before the Interstate Commerce 
 Commission, and in cases or proceedings under or connected with 
 an Act entitled "An Act to regulate commerce," approved Feb- 
 ruary fourth, eighteen hundred and eighty-seven, and amendments 
 thereto. 
 
 Be it enacted by the Senate and House of Bepresenta- 
 tives of the United States of America in Congress assem- 
 be ^e X c'u'sVd ^'^^» That no person shall be excused from attending 
 by"fear^*of''in? ^^^ testifying or from producing books, papers, tariffs, 
 crimination. contracts, agreements and documents before the Inter- 
 state Commerce Commission, or in obedience to the sub- 
 pcGna of the Commission, whether such subpoena be 
 signed or issued by one or more Commissioners, or in 
 any cause or proceeding, criminal or otherwise, based 
 upon or growing out of any alleged violation of the Act 
 of Congress, entitled "An Act to regulate commerce, ap- 
 proved February fourth, eighteen hundred and eighty- 
 seven, or of any amendment thereof on the ground or for 
 the reason that the testimony or evidence, documentary 
 or otherwise, required of him, may tend to criminate him 
 Immunity, or subject him to a penalty or forfeiture. But no person 
 shall be prosecuted or subjected to any penalty or for- 
 feiture for or on account of any transaction, matter or 
 thing, concerning which he may testify, or produce evi- 
 dence, documentary or otherwise, before said Commis- 
 tion, or in obedience to its subpcena, or the subpoena of 
 either of them, or in any such case or proceeding: Pro- 
 be'punished"^'' vic^cd, That no pcrson so testifying shall be exempt from 
 prosecution and punishment for perjury committed in so 
 testifying. 
 Fi^%"or"im- -^^^ pcrson who shall neglect or refuse to attend and 
 both""™^"*' °^ testify, or to answer any lawful inquiry, or to produce 
 books, papers, tariffs, contracts, agreements and docu- 
 ments, if in his power to do so, in obedience to the sub- 
 
IMMUNITY OF WITNESSES ACT. 57 
 
 poena or lawful requirement of the Commission shall be 
 guilty of an offense and upon conviction thereof by a 
 court of competent jurisdiction shall be punished by fine 
 not less than one hundred dollars nor more than five 
 thousand dollars, or by imprisonment for not more than 
 one year or by both such fine and imprisonment. 
 Public, No. 54, approved February 11, 1893. 
 
 Imiuunity of Witnesses Act. 
 
 AN ACT Defining the right of immunity of witnesses under the 
 Act entitled "An Act in relation to testimony before the Inter- 
 state Commerce Commission," and so forth, approved February 
 eleventh, eighteen hundred and ninety-three, and an Act entitled 
 "An Act to establish the Department of Commerce and Labor," 
 approved February fourteenth, nineteen hundred and three, and 
 an Act entitled "An Act to further regulate commerce with for- 
 eign nations and among the States," approved February nine- 
 teenth, nineteen hundred and three, and an Act entitled "An Act 
 making appropriations for the legislative, executive, and judicial 
 expenses of the Government for the fiscal year ending June thir- 
 tieth, nineteen hundred and four, and for other purposes," ap- 
 proved February twenty-fifth, nineteen hundred and three. 
 
 Be it enacted by the Senate and House of Representa- 
 tives of the United States of America in Congress assem- 
 bled, That under the immunity provisions in the Act 
 entitled "An Act in relation to testimony before the In- 
 terstate Commerce Commission," and so forth, approved 
 February eleventh, eighteen hundred and ninety-three, 
 in section six of the Act entitled "An Act to establish the 
 Department of Commerce and Labor," approved Febru- 
 ary fourteenth, nineteen hundred and three, and in the 
 Act entitled "An Act to further regulate commerce with 
 foreign nations and among the States," approved Febru- 
 ary nineteenth, nineteen hundred and three, and in the 
 Act entitled "An Act making appropriations for the leg- 
 islative, executive, and judicial expenses of the Govern- 
 ment for the fiscal year ending June thirtieth, nineteen 
 hundred and four, and for other purposes," approved 
 February twenty-fifth, nineteen hundred and three, im- ten"s"""niy ^to 
 munity shaU extend only to a natural person who, in wlho'gi've^testi- 
 obedience to a subpoena, gives testimony under oath or ^bp^na"and 
 produces evidence, documentary or otherwise, under oath. """Jer oath. 
 
 Public, No. 389, approved June 30, 1906. 
 
58 ELKINS ACT. 
 
 Elkins Act. 
 
 AN ACT To further regulate commerce with foreign nations and 
 among the States. 
 
 Be it enacted by the Senate and House of Representa- 
 tives of tJie United States of America in Congress assem- 
 as°w°ei?is*offl" ^^^<^' ^EC. 1. {As amended June 29, 1906.) That any 
 i^bief ^^^^^ thing done or omitted to be done by a corporation com- 
 mon carrier, subject to the Act to regulate commerce and 
 the Acts amendatory thereof, which, if done or omitted 
 to be done by any director or officer thereof, or any re- 
 ceiver, trustee, lessee, agent, or person acting for or em- 
 ployed by such corporation, would constitute a misde- 
 meanor under said Acts or under this Act, shall also be 
 held to be a misdemeanor committed by such corporation, 
 Penalty. ^nd Upon conviction thereof it shall be subject to like pen- 
 alties as are prescribed in said Acts or by this Act with 
 reference to such persons, except as such penalties are 
 carrfer^o'pub- herein changed. The willful failure upon the part of any 
 observe* tariffs Carrier Subject to said Acts to file and publish the tariffs 
 a misdemeanor, Qp rates and charges as required by said Acts, or strictly 
 to observe such tariffs until changed according to law, 
 shall be a misdemeanor, and upon conviction thereof the 
 Penalty, fine, corporation offending shall be subject to a fine of not less 
 than one thousand dollars nor more than twenty thousand 
 to^ffer'^Bra'nir •lol^^'i's for cach offense; and it shall be unlawful for any 
 cepti or 'recefve P^rson, persons, or corporation to offer, grant, or give, 
 concessfon^ o1^ ^^ ^^ solicit, accept, or receive any rebate, concession, or 
 discrimination, discrimination in respect to the transportation of any 
 property in interstate or foreign commerce by any com- 
 mon carrier subject to said Act to regulate commerce and 
 the Acts amendatory thereof 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 Act to regulate commerce 
 and the Acts amendatory thereof, 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 con- 
 Penaity, fine, viction thereof shall be punished by a fine of not less 
 
 or 1 m p r I son- ^ ^ 
 
 ment, or both, x^^qto. One thousand dollars nor more than twenty thousand 
 dollars: Provided, That any person, or any officer or di- 
 rector of any corporation subject to the provisions of 
 
ELKINS ACT. 59 
 
 this Act, or the Act to regulate commerce and the Acts 
 amendatory thereof, or any receiver, trustee, lessee, agent, 
 or person acting for or employed by any such corpora- 
 tion, who shall be convicted as aforesaid, shall, in ad- 
 dition to the fine herein provided for, be liable to im- 
 prisonment in the penitentiary for a term of not exceed- 
 ing two years, or both such fine and imprisonment, in the 
 discretion of the court. Every violation of this section m^'"ife*in*any 
 shall be prosecuted in any court of the United States fhrougii'^which 
 having jurisdiction of crimes within the district in which passls°'^'*"°" 
 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, de- 
 termined, and punished in either jurisdiction in the same 
 manner as if the offense had been actually and wholly 
 committed therein. 
 
 In construing and enforcing the provisions of this ijabir^^fOT^^cts 
 section, the act, omission, or failure of any officer, agent, °^ agents. 
 or other person acting for or employed by any common 
 carrier, or shipper, acting within the" scope of his em- 
 ployment, 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 pantcfpa^ld* in 
 the Interstate Commerce Commission or publishes a par- a^agSnst^s'uih 
 ticular rate under the provisions of the Act to regulate dee^'ed^iekaL ^ 
 commerce or Acts amendatory thereof, or participates in 
 any rates so filed or published, that rate as against such 
 carrier, its officers or agents, in any prosecution begun 
 under this Act 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 of this Act. 
 
 Any person, coporation, or company who shall deliver 
 property for interstate transportation to any common 
 carrier, subject to the provisions of this Act, or for whom 
 as consignor or consignee, any such carrier shall trans- 
 port 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 indi- 
 rectly, 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 qf 
 
60 ELKINS ACT. 
 
 m'^ y"" Ve' 'en- ^"''^ property, as fixed by the schedules of rates provided 
 rece!vera of'?l- ^or in this Act, shall in addition to any penalty pro- 
 bates, vided by this Act 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 consid- 
 eration 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 rea- 
 sonable grounds to believe that any such person, corpo- 
 ration, 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 afore- 
 said, 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 re- 
 ceived 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. 
 eSid "fn 'mit- ^^°- 2- '^^^* ™ ^^y Proceeding for the enforcement of 
 L^ca*ses"before *^^ provisions of the Statutes relating to interstate com- 
 c'o'm'me^rce ^^rcc, whether such proceedings be instituted before the 
 ci?cuit'^c o" r t Interstate Commerce Commission or be begun originally 
 ^a? til s™anl ^^ ^^^ circuit court of the United States, it shall be law- 
 fe(ft ' to'^orders ^^ *^ include as parties, in addition to the carrier, all 
 or decrees. persons interested in or affected by the rate, regulation, 
 or practice under consideration, and inquiries, investiga- 
 tions, 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. 
 Court may gEc. 3. That whenever the Interstate Commerce Com- 
 
 re s t r a 1 n de- 
 
 ^ubiisifed /ates niission shall have reasonable ground for belief that any 
 i'na^ion'^^rohib- common Carrier is engaged in the carriage of passengers 
 ited by law. qj, freight traffic between given points at less than the 
 published rates on file, or is committing any discrimina- 
 tions forbidden by law, a petition may be presented alleg- 
 ing such facts to the circuit court of the United States 
 sitting in equity having jurisdiction; and when the act 
 complained of is alleged to have been committed or as 
 being committed in part in more than one judicial district 
 or State, it may be dealt with, inquired of, tried, and 
 
ELKINS ACT. 61 
 
 determined in either such judicial district or State, 
 whereupon it shall be the duty of the court summarily 
 to inquire into the circumstances, upon such notice and 
 in such manner as the court shall direct and without the 
 formal pleadings and proceedings applicable to ordinary 
 suits in equity, and to make such other persons or corpo- 
 rations parties thereto as the court may deem necessary, 
 and upon being satisfied of the truth of the allegations 
 of said petition said court shall enforce an observance of 
 the published tariffs^ or direct and require a discontin- 
 uance of such discrimination by proper orders, writs, and 
 process, which said orders, writs, and process may be 
 enforceable as well against the parties interested in the 
 traffic as against the carrier, subject to the right of appeal 
 as now provided by law. It shall be the duty of the 
 several district attorneys of the United States, whenever 
 the Attorney General shall direct, either of his own mo- 
 tion or upon the request of the Interstate Commerce Com- 
 mission, to institute and prosecute such proceedings, and 
 the proceedings provided for by this Act shall not pre- 
 clude the bringing of suit for the recovery of damages by 
 any party injured, or any other action provided by said 
 Act approved February fourth, eighteen hundred and 
 eighty-seven, entitled "An Act to regulate commerce " 
 and the Acts amendatory thereof. And in proceedings coSpei att^id^ 
 under this Act and the Acts to regulate commerce the said ^"°ny*"o'f * wit- 
 courts shall have the power to compel the attendance of ^^^^^^f ?-^^ p™; 
 witnesses, both upon the part of the carrier and the ship- ^°°^^ ^"^ p^' 
 per, who shall be required to answer on all subjects relat- 
 ing directly or indirectly to the matter in controversy, and 
 to compel the production of all books and papers, both of 
 the carrier and shipper, which relate directly or indi- 
 rectly to such transaction; the claim that such testimony 
 or evidence may tend to criminate the person giving such 
 evidence shall not excuse such person from testifying or 
 such corporation producing its books and paperSj but no immunity, 
 person shall be prosecuted or subjected to any penalty or 
 forfeiture for or on account of any transaction, matter, or 
 thing concerning which he may testify or produce evi- 
 dence documentary or otherwise in such proceeding: Pro- aJ o/^Feb^n! 
 vided, That the provisions of an Act entitled "An Act to Jl'^^i^l^ ^^^fl 
 expedite the hearing and determination of suits in equity J^?fon"of ""ftl 
 pending or hereafter brought under the Act of July fni^ne^oflnl 
 second, eighteen hundred and ninety, entitled 'An Act to ^%S|t|;o„^^S: 
 protect trade and commerce against unlawful restraints «'°"- 
 
62 EXPEDITING ACT. 
 
 and monopolies, ' ' An Act to regulate commerce, ' approved 
 February fourth, eighteen hundred and eighty-seven, or 
 any other acts having a like purpose that may be hereafter 
 enacted, approved February eleventh, nineteen hundred 
 and three," shall apply to any case prosecuted under the 
 direction of the Attorney General in the name of the 
 Interstate Commerce Commission. 
 iaws°repVaied.^ ^^^- ^- ^hat all Acts and parts of Acts in conflict with 
 the provisions of this Act are hereby repealed, but such 
 repeal shall not aifect causes now pending nor rights 
 which have already accrued, but such causes shall be pros- 
 ecuted to a conclusion and such rights enforced in a man- 
 ner heretofore provided by law and as modified by the 
 provisions of this Act. 
 
 Sec. 5. That this Act shall take effect from its passage. 
 
 Public, No. 103, approved February 19, 1903. 
 
 (See additional provisions in act of June 29, 1906, p. 
 50, ante. 
 
 Expediting Act (As Amended). 
 
 AN ACT To expedite the hearing and determination of suits in 
 equity pending or hereafter brought under the act of July sec- 
 ond, eighteen hundred and ninety, entitled "An Act to protect 
 trade and commerce against unlawful restraints and monop- 
 olies," "An Act to regulate commerce," approved February fourth, 
 eighteen hundred and eighty-seven, or any other Acts having 
 a like purpose that may be hereafter enacted. 
 
 Be it enacted by the Senate and House of Bepresenta- 
 tives of the United States of America in Congress assem- 
 bled, Sec. 1. (As amended June 25, 1910.) That in any 
 suit in equity pending or hereafter brought in any cir- 
 cuit court of the United States under the Act entitled 
 "An Act to protect trade and commerce against unlaw- 
 ful restraints and monopolies," approved July second, 
 eighteen hundred and ninety, "An Act to regulate com- 
 merce," approved February fourth, eighteen hundred 
 and eighty-seven, or any other Acts having a like pur- 
 pose that hereafter may be enacted, wherein the United 
 General" "^m a y States is Complainant, the Attorney General may file with 
 ftie certiflcate. ^^g clerk of such court & Certificate that, in his opinion, 
 the case is of general public importance, a copy of which 
 shall be immediately furnished by such clerk to each of 
 
EXPEDITING ACT. 6S 
 
 the circuit judges of the circuit in which the case is 
 pending. Thereupon such case shall be given precedence 
 over others and in every way expedited, and be assigned 
 for hearing at the earliest practicable day, before not less ^ o'^^e'^^'t h r e^e 
 than three of the circuit judges of said court, if there be 3"<iees. 
 three or more; and if there be not more than two circuit 
 judges, then before them and such district judge as they 
 may select; or, in case the full court shall not at any 
 time be made up by reason of all necessary absence or 
 disqualification of one or more of the said circuit judges, 
 the justice of the Supreme Court assigned to that cir- 
 cuit or the other circuit judge or judges may designate 
 a district judge or judges within the circuit who shall be 
 competent to sit in said court at the hearing of said 
 suit. In the event the judges sitting in such case shall 
 be equally divided in opinion as to the decision or dis- 
 position of said cause, or in the event that a majority of 
 said judges shall be unable to agree upon the judgment, 
 order, or decree finally disposing of said case in said 
 court which should be entered in said cause, then they 
 shall immediately certify that fact to the Chief Justice to d'ysV"natl 
 of the United States, who shall at once designate and fn'"''""al"e^ ^of 
 appoint some circuit judge to sit with said judges and to ®i"^i division. 
 assist in determining said cause. Such order of the Chief 
 Justice shall be immediately transmitted to the clerk of 
 the circuit court in which said cause is pending, and shall 
 be entered upon the minutes of said court. Thereupon Reargument. 
 said cause shall at once be set down for reargument and 
 the parties thereto notified in writing by the clerk of 
 said court of the action of the court and the date fixed 
 for the reargument thereof. The provisions of this sec- 
 tion shall apply to all causes and proceedings in all courts 
 now pending, or which may hereafter be brought. 
 
 Sec. 2. That in every suit in equity pending or here- pr^f^courtf"' 
 after brought in any circuit court of the United States 
 under any of said Acts, wherein the United States is com- 
 plainant, including cases submitted but not yet decided, 
 an appeal from the final decree of the circuit court will 
 lie only to the Supreme Court and must be taken within 
 sixty days from the entry thereof : Provided, That in any Exception, 
 case where an appeal may have been taken from the final 
 decree of a circuit court to the circuit court of appeals be- 
 fore this Act takes effect, the case shall proceed to a final 
 decree therein, and an appeal may be taken from such 
 
64 CLAYTON ANTITRUST ACT. 
 
 decrfee to the Supreme Court in the manner now provided 
 by law. 
 
 Public, No. 82, approved February 11, 1903; Public, 
 No. 310, approved June 25, 1910. 
 
 Clayton Antitrust Act. 
 
 AN ACT To supplement existing laws against unlawful restraints 
 and monopolies, and for other purposes. 
 
 Be it enacted by the Senate and House of Representa- 
 tives of tlie United States of America in Congress assem- 
 bled, 
 
 Sec. 1. That ' ' antitrust laws, ' ' as used herein, includes 
 the Act entitled "An Act to protect trade and commerce 
 against unlawful restraints and monopolies," approved 
 July second, eighteen hundred and ninety; sections sev- 
 enty-three to seventy-seven, inclusive, of an Act enti- 
 
 ciuded^in this ^^^^ "An Act to reduce taxation, to provide revenue for 
 
 -^'=*- the Government, and for other purposes," of August 
 
 twenty-seventh, eighteen hundred and ninety-four ; an 
 Act entitled "An Act to amend sections seventy- three and 
 seventy-six of the Act of August twenty-seventh, eight- 
 een hundred and ninety-four, entitled 'An Act to reduce 
 taxation, to provide revenue for the Government, and 
 for other purposes,' " approved February twelfth, nine- 
 teen hundred and thirteen ; and also this Act. 
 
 terms^"'"^ °* " Commerce," as used herein, means trade or commerce 
 among the several States and with foreign nations, or be- 
 tween the District of Columbia or any Territory of the 
 "Commerce." United States and any State, Territory, or foreign na- 
 tion, or between any insular possessions or other places 
 
 sessums''^ ^°^" ^^i^^^r the jurisdiction of the United States, or between 
 any such possession or place and any State or Territory 
 of the United States or the District of Columbia or any 
 foreign nation, or within the District of Columbia or any 
 Territory or any insular possession or- other place under 
 Provisos. the jurisdiction of the United States: Provided, That 
 
 cable* to^^the nothing in this Act contained shall apply to the Philip- 
 
 Phiuppines. pine Islands. 
 
 "persons"" °^ '^^ word " person " or " persons " wherever used in 
 this Act shall be deemed to include corporations and as- 
 sociations existing under or authorized by the laws of 
 either the United States, the laws of any of the Territo- 
 
CLAYTON ANTITRUST ACT. 65 
 
 ries, the laws of any State, or the laws of any foreign 
 country. 
 
 Sec. 2. That it shall be unlawful for any person en- n° discrimi- 
 
 il CjL If 1 O Xl 1 11 
 
 gaged in commeree, in the course of such commerce, p'"*'^®^- 
 either directly or indirectly to discriminate in price be- 
 tween different purchasers of commodities, which com- 
 modities are sold for use, consumption, or resale within 
 the United States or any Territory thereof or the District 
 of Columbia or any insular possession or other place un- 
 der the jurisdiction of the United States, where the effect 
 of such discrimination may be to substantially lessen 
 competition or tend to create a monopoly in any line 
 of commerce: Provided, That nothing herein contained Exceptions, 
 shall prevent discrimination in price between purchasers 
 of commodities on account of differences in the grade, 
 quality, or quantity of the commodity sold, or that makes 
 only due allowance for difference in the cost of selling 
 or transportation, or discrimination in price in the same 
 or different communities made in good faith to meet com- 
 petition: And provided further, That nothing herein 
 contained shall prevent persons engaged in selling goods, 
 wares, or merchandise in commerce from selecting their 
 own customers in bona fide transactions and not in re- 
 straint of trade. 
 
 Sec. 3. That it shall be unlawful for any person en-. Unlawful so 
 
 •^ -"^ to fix prices as 
 
 gaged in commeree, in the course of such commerce, to^°^[^*t8 mo- 
 lease or make a sale or contract for sale of goods, wares, 
 merchandise, machinery, supplies or other commodities, 
 whether patented or unpatented, for use, consumption or 
 resale within the United States or any Territory thereof 
 or the District of Columbia or any insular possession or 
 other place under the jurisdiction of the United States, 
 or fix a price charged therefor, or discount from, or re~ 
 bate upon, such price, on the condition, agreement or 
 understanding that the lessee or purchaser thereof shall 
 not use or deal in the goods, wares, merchandise, ma- 
 chinery, supplies or other commodities of a competitor 
 or competitors of the lessor or seller, where the effect of 
 such lease, sale, or contract for sale or such condition, 
 agreement or understanding may be to substantially 
 lessen competition or tend to create a monopoly in any 
 
 line of commerce. 
 
 # * * # # 
 
 Sec. 7. That no corporation engaged in commerce shall g£^°g"'^^t'°^^of 
 acquire, directly or indirectly, the whole or any part ofP^®*]*^""" prohib- 
 64823°— 17 5 
 
66 
 
 CLAYTON ANTITRUST ACT. 
 
 the stock or other share capital of another corporation 
 engaged also in commerce, where the effect of such acqui- 
 sition may be to substantially lessen competition between 
 the corporation whose stock is so acquired and the cor- 
 poration making the acquisition, or to restrain such com- 
 merce in any section or community, or tend to create a 
 monopoly of any line of commerce, 
 les^o "cOT^peti- ^° corporation shall acquire, directly or indirectly, the 
 tors prohibited, -^yhole or any part of the stock or other share capital of 
 two or more corporations engaged in commerce where the 
 effect of such acquisition, or the use of such stock by the 
 voting or granting of proxies or otherwise, may be to 
 substantially lessen competition between such corpora- 
 tions, or any of them, whose stock or other share capital 
 is so acquired, or to restrain such commerce in any sec- 
 tion or community, or tend to create a monopoly of any 
 line of commerce. 
 Exceptions. Tj^jg geetion shall not apply to corporations purchasing 
 such stock solely for investment and not using the same 
 by voting or otherwise to bring about, or in attempting 
 to bring about, the substantial lessening of competition. 
 Nor shall anything contained in this section prevent a 
 corporation engaged in commerce from causing the for- 
 mation of subsidiary corporations for the actual carrying 
 on of their immediate lawful business, or the natural and 
 legitimate branches or extensions thereof, or from own- 
 ing and holding all or a part of the stock of such sub- 
 sidiary corporations, when the effect of such formation 
 is not to substantially lessen competition. 
 
 Nor shall anything herein contained be construed to 
 prohibit any common carrier subject to the laws to regu- 
 late commerce from aiding in the construction of branches 
 or short lines so located as to become feeders to the main 
 a b's o'^r^" non^ ^^^^ ^^ ^^^ Company so aiding in such construction or 
 short uneV"^* from acquiring or owning all or any part of the stock 
 of such branch lines, nor to prevent any such common 
 carrier from acquiring and owning all or any part of the 
 stock of a branch or short line constructed by an inde- 
 pendent company where there is no substantial compe- 
 tition between the company owning the branch line so 
 constructed and the company owning the main line ac- 
 quiring the property or an interest therein, nor to pre- 
 vent such common carrier from extending any of its 
 lines through the medium of the acquisition of stock or 
 otherwise of any other such common carrier where there 
 
CLAYTON ANTITRUST ACT. 67 
 
 is no substantial competition between the company ex- 
 tending its lines and the company whose stock, property, 
 or an interest therein is so acquired. 
 
 Nothing contained in this section shall be held to aifect , AP= '.JJ^^^t! 
 or impair any right heretofore legally acquired: Pro- peaied. 
 vided, That nothing in this section shall be held or con- 
 strued to authorize or make lawful anything heretofore 
 prohibited or made illegal by the antitrust laws, nor to 
 exempt any person from the penal provisions thereof or 
 the civil remedies therein provided. 
 
 Sec. 8. That from and after two years from the date of „Hi''.?5i°'„i» 
 
 *' more than one 
 
 the approval of this Act no person shall at the same time capitai°proWb- 
 be a director or other officer or employee of more than "ed. 
 one bank, banking association or trust company, organ- 
 ized or operating under the laws of the United States, 
 either of which has deposits, capital, surplus, and undi- 
 vided profits aggregating more than $6,000,000; and no 
 private banker or person who is a director in any bank 
 or trust company, organized and operating under the 
 laws of a State, having deposits, capital, surplus, and 
 undivided profits aggregating more than $5,000,000, shall 
 be eligible to be a director in any bank or banking asso- 
 ciation organized or operating under the laws of the 
 United States. The eligibility of a director, officer, or of^'in*'""'' °* 
 employee under the foregoing provisions shaU be deter- 
 mined by the average amount of deposits, capital, surplus, 
 and undivided profits as shown in the official statements 
 of such bank, banking association, or trust company filed 
 as provided by law during the fiscal year next preceding 
 the date set for the annual election of directors, and when 
 a director, officer, or employee has been elected or selected 
 in accordance with the provisions of this Act it shall be 
 lawful for him to continue as such for one year thereafter 
 under said election or employment. 
 
 No bank, banking association or trust company, organ- smaiier^'b^I n k 
 ized or operating under the laws of the United States, another^banl*" 
 in any city or incorporated town or village of more than 
 two hundred thousand inhabitants, as shown by the last 
 preceding decennial census of the United States, shall 
 have as a director or other officer or employee any private 
 banker or any director or other officer or employee of 
 any other bank, banking association or trust company 
 located in the same place : Provided, That nothing in this 
 section shall apply to mutual savings banks not having 
 a capital stock represented by shares: Provided further, 
 
68 (XAYTON ANTITRUST ACT. 
 
 That a director or other officer or employee of such bank, 
 banking association, or trust company may be a director 
 or other officer or employee of not more than one other 
 bank or trust company organized under the laws of the 
 United States or any State where the entire capital stock 
 of one is owned by stockholders in the other: And pro- 
 vided further, That nothing contained in this section 
 shall forbid a director of class A of a Federal reserve 
 bank, as defined in the Federal Keserve Act from being 
 an officer or director or both an officer and director in one 
 member bank. 
 sa™|CTs"oVto "^^^^ *^°i" ^^^ a^ter two years from the date of the 
 two'^'or°*^°more approval of this Act no person at the same time shall be 
 corporations, g, director in any two or more corporations, any one of 
 which has capital, surplus, and undivided profits aggre- 
 gating more than $1,000,000, engaged in whole or in part 
 in commerce, other than banks, banking associations, trust 
 companies and common carriers subject to the Act to 
 regulate commerce, approved February fourth, eighteen 
 hundred and eighty-seven, if such corporations are or 
 shall have been theretofore, by virtue of their business 
 and location of operation, competitors, so that the elimi- 
 nation of competition by agreement between them would 
 constitute a violation of any of the provisions of any of 
 the antitrust laws. The eligibility of a director under the 
 foregoing provision shall be determined by the aggregate 
 amount of the capital, surplus, and undivided profits, ex- 
 clusive of dividends declared but not paid to stockholders, 
 at the end of the fiscal year of said corporation next pre- 
 ceding the election of directors, and when a director has 
 been elected in accordance with the provisions of this Act 
 it shall be lawful for him to continue as such for one year 
 thereafter. 
 Present reia- When any person elected or chosen as a director or 
 
 tions may exist •/ i- 
 
 for one year, officer or Selected as an employee of any bank or other 
 corporation subject to the provisions of this Act is eligible 
 at the time of his election or selection to act for such bank 
 or other corporation in such capacity his eligibility to 
 act in such capacity shall not be affected and he shall 
 not become or be deemed amenable to any of the pro- 
 visions hereof by reason of any change in the affairs of 
 such bank or other corporation from whatsoever cause, 
 whether specifically excepted by any of the provisions 
 hereof or not, until the expiration of one year from the 
 date of his election or employment. 
 
CLAYTON ANTITRUST ACT. 69 
 
 Sec. 9. Every president, director, officer or manager of ^^ ^J ^^^^^ 
 any firm, association or corporation engaged in com- 
 merce as a common carrier, who embezzles, steals, ab- 
 stracts or willfully misapplies, or willfully permits to 
 be misapplied, any of the moneys, funds, credits, securi- 
 ties, property or assets of such firm, association or cor- 
 poration, arising or accruing from, or used in, such 
 commerce, in whole or in part, or willfully or knowingly 
 converts the same to his own use or to the use of another, 
 shall be deemed guilty of a felony and upon conviction 
 shall be fined not less than $500 or confined in the peni- 
 tentiary not less than one year nor more than ten years, 
 or both, in the discretion of the court. 
 
 Prosecutions hereunder may be in the district court i„^<j'i°|®t°ri'ct 
 of the United States for the district wherein the offense courts, 
 may have been committed. 
 
 That nothing in this section shall be held to take away ^'^*^ courts, 
 or impair the jurisdiction of the courts of the several 
 States under the laws thereof; and a judgment of convic- 
 tion or acquittal on the merits under the laws of any State 
 shall be a bar to any prosecution hereunder for the same 
 act or acts. 
 
 Sec. 10. That after two years from the approval of this hibifed'^f r^o'"m 
 Act no common carrier engaged in commerce shall have fr"om° another 
 any dealings in securities, supplies or other articles of havfng "s'^a ni " 
 commerce, or shall make or have any contracts for con- officers, 
 struction or maintenance of any kind, to the amount of 
 more than $50,000, in the aggregate, in any one year, with 
 another corporation, firm, partnership or association 
 when the said common carrier, shall have upon its board 
 of directors or as its president, manager or as its pur- 
 chasing or selling officer, or agent in the particular trans- 
 action, any person who is at the same time a director, 
 manager, or purchasing or selling officer of, or who has 
 any substantial interest in, such other corporation, firm, 
 partnership or association, unless and except such pur- 
 chases shall be made from, or such dealings shall be with, 
 the bidder whose bid is the most favorable to such com- 
 mon carrier, to be ascertained by competitive bidding vifed'^b/Th'^^ 
 under regulations to be prescribed by rale or otherwise commission, 
 by the Interstate Commerce Commission. No bid shall 
 be received unless the name and address of the bidder or 
 the names and addresses of the officers, directors and gen- 
 eral managers thereof, if the bidder be a corporation, or 
 
70 
 
 CLAYTON ANTITRUST ACT. 
 
 of the members, if it be a partnership or firm, be given 
 
 with the bid. 
 Penalty. j^^y person who shall, directly or indirectly, do or 
 
 attempt to do anything to prevent anyone from bidding 
 or shall do any act to prevent free and fair competition 
 among the bidders or those desiring to bid shall be pun- 
 ished as prescribed in this section in the case of an officer 
 or director, 
 p u r^haVe°s Every such common carrier having any such transac- 
 mfsi!on.° ^°'"' tions or making any such purchases shall within thirty 
 days after making the same file with the Interstate Com- 
 merce Conmiission a full and detailed statement of the 
 transaction showing the manner of the competitive bid- 
 ding, who were the bidders, and the names and addresses 
 of the directors and officers of the corporations and the 
 members of the firm or partnership bidding; and when- 
 ever the said Commission shall, after investigation or 
 hearing, have reason to believe that the law has been 
 violated in and about the said purchases or transactions 
 it shall transmit all papers and documents and its own 
 views or findings regarding the transaction to the At- 
 torney General. 
 Penalty. jf ^ny common carrier shall violate this section it shall 
 
 be fined not exceeding $25,000; and every such director, 
 agent, manager or officer thereof who shall have know- 
 ingly voted for or directed the act constituting such vio- 
 lation or who shall have aided or abetted in such violation 
 shall be deemed guilty of a misdemeanor and shall be 
 fined not exceeding $5,000, or confined in jail not exceed- 
 ing one year, or both, in the discretion of the court. 
 ., ^"*°'""y 9* Sec. 11. That authority to enforce compliance with 
 
 the Commis- "^ ^ 
 
 s'°"- sections two, three, seven and eight of this Act by the 
 
 persons respectively subject thereto is hereby vested: in 
 the Interstate Commerce Commission where applicable 
 to common carriers, in the Federal Reserve Board where 
 applicable to banks, banking associations and trust com- 
 panies, and in the Federal T'rade Commission where ap- 
 plicable to all other character of commerce, to be exer- 
 cised as follows : 
 Procedure. Whenever the Commission or board vested with juris- 
 
 diction thereof shall have reason to believe that any per- 
 son is violating or has violated any of the provisions of 
 sections two, three, seven and eight of this Act, it shall 
 issue and serve upon such person a complaint stating 
 its charges in that respect, and containing a notice of a 
 
CLAYTON ANTITRUST ACT. 
 
 hearing upon a day and at a place therein fixed at least 
 thirty days after the service of said complaint. The per- 
 son so complained of shall have the right to appear at the 
 place and time so fixed and show cause why an order 
 should not be entered by the Commission or board re- 
 quiring such person to cease and desist from the violation 
 of the law so charged in said complaint. Any person 
 may make application, and upon good cause shown may 
 be allowed by the Commission or board, to intervene and 
 appear in said proceeding by counsel or in person. The 
 testimony in any such proceeding shall be reduced to 
 writing and filed in the office of the Commission or board. 
 If upon such hearing the Commission or board, as the 
 case may be, shall be of the opinion that any of the pro- 
 visions of said sections have been or are being violated, it 
 shall make a report in writing in which it shall state its 
 findings as to the facts, and shall issue and cause to be 
 served on such person an order requiring such person to 
 cease and desist from such violations, and divest itself 
 of the stock held or rid itself of the directors chosen con- 
 trary to the provisions of sections seven and eight of this 
 Act, if any there be, in the manner and within the time 
 fixed by said order. Until a transcript of the record in 
 such hearing shall have been filed in a circuit court of 
 appeals of the United States, as hereinafter provided, the 
 Commission or board may at any time, upon such notice 
 and in such manner as it shall deem proper, modify or 
 set aside, in whole or in part, any report or any order 
 made or issued by it under this section. 
 
 If such person fails or neglects to obey such order of 
 the Commission or board while the same is in effect, the 
 Commission or board may apply to the circuit court of 
 appeals of the United States, within any circuit where 
 the violation complained of was or is being committed or 
 where such person resides or carries on business, for the 
 enforcement of its order, and shall certify and file with 
 its application a transcript of the entire record in the 
 proceeding, including all the testimony taken and the 
 report and order of the Commission or board. Upon 
 such filing of the application and transcript the court 
 shall cause notice thereof to be served upon such person 
 and thereupon shall have jurisdiction of the proceeding 
 and of the question determined therein, and shall have 
 power to make and enter upon the pleadings, testimony. 
 
 71 
 
 Interveners. 
 
 Hearings. 
 
 Order. 
 
 Rehearings. 
 
 C o mmlssion 
 may appeal to 
 courts. 
 
 Procedure. 
 
72 
 
 CLAYTON ANTITRUST ACT. 
 
 and proceedings set forth in such transcript a decree af- 
 firming, modifying, or setting aside the order of the 
 
 fact!""^'"^^ °^ Commission or board. The findings of the Commission 
 or board as to the facts, if supported by testimony, shall 
 
 evidenoe! "°°^' ^^ Conclusive. If either party shall apply to the court 
 for leave to adduce additional evidence, and shall show 
 to the satisfaction of the court that such additional evi- 
 dence is material and that there were reasonable grounds 
 for the failure to adduce such evidence in the proceeding 
 before the Commission or board, the court may order such 
 additional evidence to be taken before the Commission or 
 board and to be adduced upon the hearing in such man- 
 ner and upon such terms and conditions as to the court 
 may seem proper. The Commission or board may modify 
 its findings as to the facts, or make new fimdings, by 
 reason of the additional evidence so taken, and it shall 
 file such modified or new findings, which, if supported 
 by testimony, shall be conclusive, and its recommenda- 
 tion, if any, for the modification or setting aside of its 
 original order, with the return of such additional evi- 
 
 siSr^emicourr ^^i^^^®- '^^^ judgment and decree of the court shall be 
 
 final, except that the same shall be subject to review by 
 
 the Supreme Court upon certiorari as provided in section 
 
 two hundred and forty of the Judicial Code. 
 
 carHer may j^ny party required by such order of the Commission 
 
 courts. or board to cease and desist from a violation charged may 
 
 obtain a review of such order in said circuit court of 
 
 appeals by filing in the court a written petition praying 
 
 that the order of the Commission or board be set aside. 
 
 A copy of such petition shall be forthwith served upon 
 
 the Commission or board, and thereupon the Commission 
 
 or board forthwith shall certify and file in the court a 
 
 Procedure, transcript of the record as hereinbefore provided. Upon 
 
 the filing of the transcript the court shall have the same 
 
 jurisdiction to affirm, set aside, or modify the order of 
 
 the Commission or board as in the case of an application 
 
 by the Commission or board for the enforcement of its 
 
 Findings of order, and the findings of the Commission or board as to 
 
 the facts, if supported by testimony, shall in like manner 
 
 be conclusive. 
 
 Jurisdiction The jurisdiction of the circuit court of appeals of the 
 
 United States to enforce, set aside, or modify orders of 
 
 the Commission or board shall be exclusive. 
 
 Precedence. Such proceedings in the circuit court of appeals shall 
 
 be given precedence over other cases pending therein, 
 
CLAYTON ANTITRUST ACT. 73 
 
 and shall be in every way expedited. No order of the 
 Commission or board or the judgment of the court to 
 enforce the same shall in any wise relieve or absolve any 
 person from any liability under the antitrust Acts. 
 
 Complaints, orders, and other processes of the Com- ^^L^^IJ^i ° ® °' 
 mission or board under this section may be served by any- 
 one duly authorized by the Commission or board, either 
 (a) by delivering a copy thereof to the person to be 
 served, or to a member of the partnership to be served, 
 or to the president, secretary, or other executive officer, 
 or a director of the corporation to be served; or (b) by 
 leaving a copy thereof at the principal office or place of 
 business of such person; or (c) by registering and mail- 
 ing a copy thereof addressed to such person at his prin- 
 cipal office or place of business. The verified return by 
 the person so serving said complaint, order, or other 
 process setting forth the manner of said service shall be 
 proof of the same, and the return post-office receipt for 
 said complaint, order, or other process registered and 
 mailed as aforesaid shall be proof of the service of the 
 same. 
 
 IF w •?? * tF 
 
 Sec. 15. That the several district courts of the United 
 States are hereby invested with jurisdiction to prevent of''court^'''*'°° 
 and restrain violations of this Act, and it shall be the 
 duty of the several district attorneys of the United 
 States, in their respective districts, under the direction 
 of the Attorney General, to institute proceedings in 
 equity to prevent and restrain such violations. Such Procedure, 
 proceedings may be by way of petition setting forth the 
 case and praying that such violation shall be enjoined 
 or otherwise prohibited. When the parties complained Hearings, 
 of shall have been duly notified of such petition, the court 
 shall proceed, as soon as may be, to the hearing and 
 determination of the case; and pending such petition, 
 and before final decree, the court may at any time make 
 such temporary restraining order or prohibition as shall 
 be deemed just in the premises. Whenever it shall ap- Parties, 
 pear to the court before which any such proceeding may 
 be pending that the ends of justice require that other 
 parties should be brought before the court, the court may 
 cause them to be summoned whether they reside in the 
 district in which the court is held or not, and subpoenas 
 to that end may be served in any district by the marshal 
 thereof. 
 
74 CLAYTON ANTITRUST ACT. 
 
 reiie".'' ""^ *^"^^ ^^^- ^^- '^^Bi'^ any person, firm, corporation, or asso- 
 ciation shall be entitled to sue for and have injunctive 
 relief, in any court of the United States having juris- 
 diction over the parties, against threatened loss or dam- 
 age by a violation of the antitrust laws, including sec- 
 tions two, three, seven and eight of this Act, when and 
 under the same conditions and principles as injunctive 
 relief against threatened conduct that will cause loss or 
 damage is granted by courts of equity, under the rules 
 governing such proceedings, and upon the execution of 
 Bond. proper bond against damages for an injunction improvi- 
 
 dently granted and a showing that the danger of irrep- 
 arable loss or damage is immediate, a preliminary in- 
 ohiy^mty^seeb. Junction may issue: Provided, That nothing herein con- 
 a'ga.^instcar- tained shall be construed to entitle any person, firm, cor- 
 '"'®''^- poration, or association, except the United States, to 
 
 bring suit in equity for injunctive relief against any 
 common carrier subject to the provisions of the Act to 
 regulate commerce, approved February fourth, eighteen 
 hundred and eighty-seven, in respect of any matter sub- 
 ject to the regulation, supervision, or other jurisdiction 
 of the Interstate Commerce Commission, 
 Notice. gjjc. 17. That no preliminary injunction shall be issued 
 
 without notice to the opposite party, 
 order ^*'^^*"'"^ ^° temporary restraining order shall be granted with- 
 out notice to the opposite party unless it shall clearly 
 appear from specific facts shown by affidavit or by the 
 verified bill that immediate and irreparable injury, loss, 
 or damage will result to the applicant before notice can 
 be served and a hearing had thereon. Every such tem- 
 porary restraining order shall be indorsed with the date 
 and hour of issuance, shall be forthwith filed in the clerk's 
 office and entered of record, shall define the injury and 
 I r r eparabie gtate why it is irreparable and why the order was granted 
 without notice, and shall by its terms expire within such 
 time after entry, not to exceed ten days, as the court or 
 judge may fix, unless within the time so fixed the order 
 is extended for a like period for good cause shown, and 
 the reasons for such extension shall be entered of record. 
 Hearings. j^ case a temporary restraining order shall be granted 
 without notice in the contingency specified, the matter of 
 the issuance of a preliminary injunction shall be set 
 down for a hearing at the earliest possible time and shall 
 take precedence of all matters except older matters of the 
 same character ; and when the same comes up for hearing 
 
CLAYTON ANTITRUST ACT. 75 
 
 the party obtaining the temporary restraining order shall 
 
 proceed with the application for a preliminary injunction, 
 
 and if he does not do so the court shall dissolve the tem- Dissolution. 
 
 porary restraining order. Upon two days' notice to the 
 
 party obtaining such temporary restraining order the 
 
 opposite party may appear and move the dissolution or 
 
 modification of the order, and in that event the court or 
 
 judge shall proceed to hear and determine the motion as 
 
 expeditiously as the ends of justice may require. 
 
 T* 9F * * tF 
 
 Sec. 18. That, except as otherwise provided in section Bond. 
 16 of this Act, no restraining order or interlocutory 
 order of injunction shall issue, except upon the giving 
 of security by the applicant in such sum as the court or 
 -judge may deem proper, conditioned upon the payment 
 of such costs and damages as may be incurred or suffered 
 by any party who may be found to have been wrongfully 
 enjoined or restrained thereby. 
 
 Sec. 19. That every order of injunction or restraining gon^^'^fo" ^^a 
 order shall set forth the reasons for the issuance of the "ation."' appu- 
 same, shall be specific in terms, and shall describe in 
 reasonable detail, and not by reference to the bill of com- 
 plaint or other document, the act or acts sought to be re- 
 strained, and shall be binding only upon the parties to 
 the suit, their ofiicers, agents, servants, employees, and 
 attorneys, or those in active concert or participating with 
 them, and who shall, by personal service or otherwise, 
 
 have received actual notice of the same. 
 
 * * * * * 
 
 Sec. 26. If any clause, sentence, paragraph, or part of ^J/ ^^^ j°^ 
 this Act shall, for any reason, be adjudged by any court '^^^^^ shku^'not 
 of competent jurisdiction to be invalid, such judgment ^^ affected. 
 shall not affect, impair, or invalidate the remainder 
 thereof, but shall be confined in its operation to the 
 clause, sentence, paragraph, or part thereof directly in- 
 volved in the controversy in which such judgment shall 
 have been rendered. 
 
 Resolved by tJie Senate and House of Representatives 
 of tJie United States of America in Congress assenibled, 
 That the effective date on and after which the provisions 
 of section ten of the act entitled "An act to supplement 
 existing laws against unlawful restraints and monopolies, i„^'™VcV^f 
 and for other purposes," approved October fifteenth, J^tii^Yprif it 
 nineteen hundred and fourteen, shall become and be effect- ^^^'^- 
 
76 
 
 BILLS OF LADING ACT. 
 
 ive is hereby deferred and extended to April fifteenth, 
 nineteen hundred and seventeen. 
 
 Public, No. 212, approved October 15, 1914; Public 
 Res., No. 33, approved August 31, 1916. 
 
 Bills of Ladini^ Act. 
 
 AN ACT Relating to bills of lading in interstate and foreign com- 
 merce. 
 
 Be it enacted by the Senate and House of Bepresenta- 
 
 tives of the United States of America in Congress assem- 
 in^'"^ °* ^^^' hied, That bills of lading issued by any common carrier 
 
 for the transportation of goods in any Territory of the 
 
 United States, or the District of Columbia, or from a 
 terstate*^ 'a nd pl^ce in a State to a place in a foreign country, or from 
 merlf governed ^ V^^^& in One State to a place in another State, or from 
 hereby. _ ^ place in One State to a place in the same State through 
 
 another State or foreign country, shall be governed by 
 
 this act. 
 deflne'df^* >""« Sec. 2. That a bill in which it is stated that the goods 
 
 are consigned or destined to a specified person is a 
 
 straight bill. 
 
 defined.^ "■ '""^ ^^^- ^- '^^^ ^ ^^^^ ^^ '^^i^^ i* is Stated that the goods 
 are consigned or destined to the order of any person 
 named in such bill is an order bill. Any provision in 
 such a bill or in any notice, contract, rule, regulation, or 
 tariff that it is nonnegotiable shall be null and void and 
 
 ^ N ego tiabii- ghall not affcct its negotiability within the meaning of 
 
 this act unless upon its face and in writing agreed to by 
 
 the shipper. 
 
 Issues in Qec. 4. That order bills issued in a State for the trans- 
 part for contl- 
 
 bfdden "^^ ^°^' portatiou of goods to any place in the United States on 
 the Continent of North America, except Alaska and 
 Panama, shall not be issued in parts or sets. If so issued, 
 the carrier issuing them shall be liable for failure to de- 
 liver the goods described therein to anyone who pur- 
 chases a part for value in good faith, even though the 
 purchase be after the delivery of the goods by the carrier 
 Proviso. to a holder of one of the other parts: Provided, however, 
 For insular. That nothing contained in this section shall be inter- 
 
 etc, use per- ° 
 
 mitted. preted or construed to forbid the issuing of order bills 
 
 in parts or sets for such transportation of goods to 
 Alaska, Panama, Porto Rico, the Philippines, Hawaii, 
 or foreign countries, or to impose the liabilities set forth 
 in this section for so doing. 
 
BILLS OF LADING ACT. 77 
 
 Skc. 5. That -when more than one order bill is issued in Duplicates. 
 a State for the same goods to be transported to any place be^noted?'^"^ '° 
 in the United States on the Continent of North America, 
 except Alaska and Panama, the word " duplicate," or 
 some other words or words indicating that the document 
 is not an original bill, shall be placed plainly upon the 
 face of every such bill except the one first issued. A car- 
 rier shall be- liable for the damage caused by his failure fauure""'' ^°'' 
 so to do to anyone who has purchased the bill for value 
 in good faith as an original, even though the purchase 
 be after the delivery of the goods by the carrier to the 
 holder of the original bill: Provided, liowever, That Exceptions, 
 nothing contained in this section shall in such case for 
 such transportation of goods to Alaska, Panama, Porto 
 Rico, the Philippines, Hawaii, or foreign countries be 
 interpreted or construed so as to require the placing of 
 the word ' ' duplicate ' ' thereon, or to impose the liabilities 
 set forth in this section for failure so to do. 
 
 Sec. 6. That a straight bill shall have placed plainly not'^nifotiabil! 
 upon its face by the carrier issuing it " nonnegotiable " 
 or ' ' not negotiable. ' ' 
 
 This section shall not apply, however, to memoranda Memoranda. 
 or acknowledgments of an informal character. 
 
 Sec. 7. That the insertion in an order bill of the name of ■S^de°r"bms"'' 
 of a person to be notified of the arrival of the goods 
 shall not limit the negotiability of the bill or constitute 
 notice to a purchaser thereof of any rights or equities of 
 such person in the goods. 
 
 Sec. 8. That a carrier, in the absence of some lawful ex- nv^?:'' goo^g ^^^ 
 cuse, is bound to deliver goods upon a demand made demand, 
 either by the consignee named in the bill for the goods 
 or, if the bill is an order bill, by the holder thereof, if 
 such a demand is accompanied by — 
 
 (a) An offer in good faith to satisfy the carrier's law- Conditions, 
 ful lien upon the goods ; 
 
 (b) Possession of the bill of lading and an offer in 
 good faith to surrender, properly indorsed, the bill which 
 was issued for the goods, if the bill is an order bill; and 
 
 (c) A readiness and willingness to sign, when the 
 goods are delivered, an acknowledgment that they have 
 been delivered, if such signature is requested by the 
 carrier. 
 
 In case the carrier refuses or fails to deliver the goods, cuse^ "^ ^ " ' ^'^' 
 in compliance with a demand by the consignee or holder 
 so accompanied, the burden shall be upon the carrier to 
 
78 BILLS OP LADING ACT. 
 
 establish the existence of a lawful excuse for such refusal 
 
 or failure. 
 rilr ^shln "de^ Sec. 9. That a carrier is justified, subject to the provi- 
 liver goods. sions of the three following sections, in delivering goods 
 
 to one who is — 
 
 (a) A person lawfully entitled to the possession of the 
 goods, or 
 
 (b) The consignee named in a straight bill for the 
 goods, or 
 
 (c) A person in possession of an order bill for the 
 goods, by the terms of which the goods are deliverable 
 to his order; or which has been indorsed to him, or in 
 blank by the consignee, or by the mediate or immediate 
 indorsee of the consignee. 
 
 uiUawfui'Seiiv- ^^^- ^^- '^^^^ where a carrier delivers goods to one 
 ^^^- who is not lawfully entitled to the possession of them, the 
 
 carrier shall be liable to anyone having a right of prop- 
 erty or possession in the goods if he delivered the goods 
 otherwise than as authorized by subdivisions (b) and (c) 
 of the preceding section; and, though he delivered the 
 goods as authorized by either of said subdivisions, he 
 shall be so liable if prior to such delivery he — 
 
 (a) Had been requested, by or on behalf of a person 
 having a right of property or possession in the goods, 
 not to make such delivery, or 
 
 (b) Had information at the time of the delivery that 
 it was to a person not lawfully entitled to the possession 
 of the goods. 
 
 Exceptions. Such request or information, to be effective within the 
 meaning of this section, must be given to an officer or 
 agent of the carrier, the actual or apparent scope of 
 whose duties includes action upon such a request or in- 
 formation, and must be given in time to enable the officer 
 or agent to whom it is given, acting with reasonable dili- 
 gence, to stop delivery of the goods. 
 iive?'«)ods° ^^" ^^^- ^^- "^^^ except as provided in section twenty- 
 six, and except when compelled by legal process, if a 
 carrier delivers goods for which an order bill had been 
 issued, the negotiation of which would transfer the right 
 to the possession of the goods, and fails to take up and 
 cancel the bill, such carrier shall be liable for failure to 
 deliver the goods to anyone who for value and in good 
 faith purchases such bill, whether such purchaser ac- 
 quired title to the bill before or after the delivery of the 
 
BILLS OF LADING ACT. 79 
 
 goods by the carrier and notwithstanding delivery was 
 made to the person entitled thereto. 
 
 Sec. 12. That except as provided in section twenty-six, „ f/t" ar'n't h"! 
 and except when compelled by legal process, if a carrier &oo<is. 
 delivers part of the goods for which an order bill had 
 been issued and fails either — 
 
 (a) To take up and cancel the bill, or 
 
 (b) To place plainly upon it a statement that a por- 
 tion of the goods has been delivered with a description 
 which may be in general terms either of the goods or 
 packages that have been so delivered or of the goods or 
 packages which still remain in the carrier's possession, he 
 shall be liable for failure to deliver all the goods specified 
 in the bill to anyone who for value and in good faith 
 purchases it, whether such purchaser acquired title to it 
 before or after the delivery of any portion of the goods 
 by the carrier, and notwithstanding such delivery was 
 made to the person entitled thereto. 
 
 Sec. 13. That any alteration, addition, or erasure in a ^^ jAUeration of 
 bill after its issue without authority from the carrier 
 issuing the same, either in writing or noted on the bill, 
 shall be void, whatever be the nature and purpose of the 
 change, and the bill shall be enforceable according to its 
 original tenor. 
 
 Sec. 14. That whese an order bill has been lost, stolen, „^^?®*' /i°'®'V 
 
 ' ' or a e s t royed 
 
 or destroyed a court of competent jurisdiction may order ^i"- 
 the delivery of the goods upon satisfactory proof of such 
 loss, theft, or destruction and upon the giving of a bond, 
 with sufficient surety, to be approved by the court, to pro- 
 tect the carrier or any person injured by such delivery 
 from any liability or loss incurred by reason of the orig- 
 inal bill remaining outstanding. The court may also in 
 its discretion order the payment of the carrier's reason- 
 able costs and counsel fees : Provided, a voluntary indem- 
 nifying bond without order of court shall be binding on 
 the parties thereto. 
 
 The delivery of the goods under ^n order of the court, go?ds'^u'^?de°r 
 as provided in this section, shall not relieve the carrier °''^^'" °* court. 
 from liability to a person to whom the order bill has 
 been or shall be negotiated for value without notice of 
 the proceedings or of the delivery of the goods. 
 
 Sec. 15. That a bill, upon the face of which the word de^r"*"!'"?!"-' 
 " duplicate " or some other word or words indicating cates." 
 that the document is not an original bill is placed, plainly 
 
80 BILLS OF LADING ACT. 
 
 shall impose upon the carrier issuing the same the liabil- 
 ity of one who represents and warrants that such bill is 
 an accurate copy of an original bill properly issued, but 
 no other liability. 
 to*^#oodsy'^ "tie Sec. 16. That no title to goods or right to their posses- 
 sion asserted by a carrier for his own benefit shall excuse 
 him from liability for refusing to deliver the goods ac- 
 cording to the terms of a bill issued for them, unless such 
 title or right is derived directly or indirectly from a 
 transfer made by the consignor or consignee after the 
 shipment, or from the carrier's lien, 
 ciaimanter ° ° * Sec. 17. That if more than one person claim the title 
 or possession of goods, the carrier may require all known 
 claimants to interplead; either as a defense to an action 
 brought against him for nondelivery of the goods or as 
 an original suit, whichever is appropriate, 
 may ^\™t "r- ^^^- ^^- "^^at if some one other than the consignee or 
 P'®^**- the person in possession of the bill has a claim to the 
 
 title or possession of the goods, and the carrier has infor- 
 mation of such claim, the carrier shall be excused from 
 liability for refusing to deliver the goods, either to 
 the consignee or person in possession of the bill or to 
 the adverse claimant, until the carrier has had a reason- 
 able time to ascertain the validity of the adverse claim 
 or to bring legal proceedings to compel all claimants to 
 interplead, 
 agains^t holders ^^^- ^^- '^^^^ cxccpt as provided in the two preceding 
 of bills. sections and in section nine, no right or title of a third 
 
 person, unless enforced by legal process, shall be a defense 
 to an action brought by the consignee of a straight bill or 
 by the holder of an order bill against the carrier for fail- 
 ure to deliver the goods on demand. 
 When goods gj;c, 20. That when goodS are loaded by a carrier such 
 
 3.1*6 iO£LCl6Cl D}' 
 
 a carrier. carrier shall count the packages of goods, if package 
 
 freight, and ascertain the kind and quantity if bulk 
 freight, and such carrier shall not, in such cases, insert in 
 the bill of lading or in any notice, receipt, contract, rule, 
 regulation, or tariff, ' ' Shipper 's weight, load, and count, ' ' 
 or other words of like purport, indicating that the goods 
 were loaded by the shipper and the description of them 
 made by him or in case of bulk freight and freight not 
 concealed by packages the description made by him. If 
 so inserted, contrary to the provisions of this section, said 
 words shall be treated as null and void and as if not 
 inserted therein. 
 
BILLS OF LADING ACT. 81 
 
 Sec. 21. That when package freight or bulk freight is arr^^oSdel°°by 
 loaded by a shipper and the goods are described in a bill ^ shipper, 
 of lading merely by a statement of marks or labels upon 
 them or upon package containing them, or by a state- 
 ment that the goods are said to be goods of a certain kind 
 or quantity, or in a certain condition, or it is stated in the 
 bill of lading that packages are said to contain goods of 
 a certain kind or quantity or in a certain condition, or 
 that the contents or condition of the contents of pack- 
 ages are unknown, or words of like purport are contained 
 in the bill of lading, such statements, if true, shall not 
 make liable the carrier issuing the bill of lading, although 
 the goods are not of the kind or quantity or in the con- 
 dition which the marks or labels upon them indicate, or 
 of the kind or' quantity or in the condition they were said 
 to be by the consignor. The carrier may also by inserting conditions, 
 in the bill of lading the words " Shipper's weight, load, 
 and count," or other words of like purport indicate that 
 the goods were loaded by the shipper and the description 
 of them made by him ; and if such statement be true, the 
 carrier shall not be liable for damages caused by the im- 
 proper loading or by the nonreceipt or by the misdescrip- 
 tion of the goods described in the bill of lading: Pro- scales' ^ '^ ^ ^ ^' 
 vided, Tiowever, Where the shipper of bulk freight installs 
 and maintains adequate facilities for weighing such 
 freight, and the same are available to the carrier, then 
 the carrier, upon written request of such shipper and 
 when given a reasonable opportunity so to do, shall ascer- 
 tain the kind and quantity of bulk freight within a 
 reasonable time after such written request, and the car- 
 riers shall not in such cases insert in the bill of lading 
 the words " Shipper's weight," or other words of like 
 purport, and if so inserted contrary to the provisions of 
 this section, said words shall be treated as null and void 
 and as if not inserted therein. 
 
 Sbc. 22. That if a bill of lading has been issued by a ca^^^r!"''' °^ 
 carrier or on his behalf by an agent or employee the scope 
 of whose actual or apparent authority includes the re- 
 ceiving of goods and issuing bills of lading therefor for 
 transportation in commerce among the several States and 
 with foreign nations, the carrier shall be liable to (a) 
 the owner of goods covered by a straight bill subject to 
 existing right of stoppage in transitu or (b) the holder 
 of an order bill, who has given value in good faith, rely- 
 64823°— 17 6 
 
82 BILLS OF LADING ACT. 
 
 mg upon the description therein of the goods, for dam- 
 ages caused by the nonreceipt by the carrier of all or part 
 of the goods or their failure to correspond with the de- 
 scription thereof in the bill at the time of its issue. 
 
 Sec. 23. That if goods are delivered to a carrier by the 
 owner or by a person whose act in conveying the title to 
 them to a purchaser for value in good faith would bind 
 the owner, and an order bill is issued for them, they can 
 not thereafter, while in the possession of the carrier, be 
 
 Garnishment attached by garnishment or otherwise or be levied upon 
 under an execution unless the bill be first surrendered to 
 the carrier or its negotiation enjoined. The carrier shaU 
 in no such case be compelled to deliver the actual posses- 
 sion of the goods until the bill is surrendered to him or 
 impounded by the court. 
 
 Sec. 24. That a creditor whose debtor is the owner of 
 an order bill shall be entitled to such aid from courts of 
 
 Injunction, appropriate jurisdiction by injunction and otherwise in 
 attaching such bill or in satisfying the claim by means 
 thereof as is allowed at law or in equity in regard to 
 property which can not readily be attached or levied upon 
 by ordinary legal process. 
 
 Sec. 25. That if an order biU is issued the carrier shall 
 
 Carrier's lien, have a lien on the goods therein mentioned for all charges 
 on those goods for freight, storage, demurrage and ter- 
 minal charges, and expenses necessary for the preserva- 
 tion of the goods or incident to their transportation sub- 
 sequent to the date of the bill and all other charges in- 
 curred in transportation and delivery, unless the bill ex- 
 pressly enumerates other charges for which a lien is 
 claimed. In such case there shall also be a lien for the 
 charges enumerated so far as they are allowed by law 
 and the contract between the consignor and the carrier. 
 
 Bill for goods gEc. 26. That after goods have been lawfully sold to 
 
 sold under car- ° , ■■ , 
 
 rier's lien. satisfy a carrier s hen, or because they have not been 
 claimed, or because they are perishable or hazardous, the 
 carrier shall not thereafter be liable for failure to deliver 
 the goods themselves to the consignee or owner of the 
 goods, or to a holder of the bill given for the goods when 
 they were shipped, even if such bill be an order bill. 
 Neeotiat 1 o n Sec. 27. That an order bill may be negotiated by de- 
 livery where, by the terms of the bill, the carrier under- 
 takes to deliver the goods to the order of a specified per- 
 son, and such person or subsequent indorsee of the bill 
 has indorsed it in blank. 
 
BILLS OP LADING ACT. 83 
 
 Sec. 28. That an order bill may be negotiated by the by'^i^n^d'o r s°e" 
 indorsement of the person to whose order the goods are '"«"*• 
 deliverable by the tenor of the bill. Such indorsement 
 may be in blank or to a specified person. If indorsed to 
 a specified person, it may be negotiated against by the in- 
 dorsement of such person in blank or to another specified 
 person. Subsequent negotiation may be made in like 
 manner. 
 
 Sec. 29. That a bill may be transferred by the holder t f^i^"S1i^e*r 
 by delivery, accompanied with an agreement, express or straight bm. 
 implied, to transfer the title to the bill or to the goods 
 represented thereby. A straight bill can not be negoti- 
 ated free from existing equities, and the indorsement of 
 such a bill gives the transferee no additional right. 
 
 Sec. 30. That an order bill may be negotiated by any biP'bV "posses- 
 person in possession of the same, however such posses- ^°'^- 
 sion may have been acquired, if by the terms of the bill 
 the carrier undertakes to deliver the goods to the order 
 of such person, or if at the time of negotiation the bill 
 is in such form that it may be negotiated by delivery. 
 
 Sec. 31. That a person to whom an order bill has been 
 duly negotiated acquires thereby — 
 
 (a) Such title to the goods as the person negotiating goods.*** *° 
 the bill to him had or had ability to convey to a purchaser 
 
 in good faith for value, and also such title to the goods 
 as the consignee and consignor had or had power to con- 
 vey to a purchaser in good faith for value; and 
 
 (b) The direct obligation of the carrier to hold posses- 
 sion of the goods for him according to the terms of the 
 bill as fully as if the carrier had contracted directly with 
 him. 
 
 Sec. 32. That a person to whom a bill has been trans- tuTe!" ^°^'®''®*'^ 
 ferred, but not negotiated, acquires thereby as against the 
 transferor the title to the goods, subject to the terms of 
 any agreement with the transferor. If the bill is a 
 straight biU such person also acquires the right to notify 
 the carrier of the transfer to him of such bill and thereby 
 to become the direct obligee of whatever obligations the 
 carrier owed to the transferor of the bill immediately 
 before the notification. 
 
 Prior to the notification of the carrier by the trans- to^°rrie*r?^"°" 
 feror or transferee of a straight bill the title of the trans- 
 feree to the goods and the right to acquire the obligation 
 of the carrier may be defeated by garnishment or by 
 attachment or execution upon the goods by a creditor of 
 
84 
 
 BILLS OP LADING ACT. 
 
 Lawful noti- 
 fication. 
 
 Com pelling 
 indorsement. 
 
 Warranties. 
 
 Liability 
 indorser. 
 
 of 
 
 Pledge' 
 warranty. 
 
 Vali dity 
 of negotiation. 
 
 the transferor, or by a notification to the carrier by the 
 transferor or a subsequent purchaser from the trans- 
 feror of a subsequent sale of the goods by the transferor. 
 
 A carrier has not received notification within the mean- 
 ing of this section unless an officer or agent of the car- 
 rier, the actual or apparent scope of whose duties in- 
 cludes action upon such a notification, has been notified; 
 and no notification shaU be effective until the officer or 
 agent to whom it is given has had time, with the exercise 
 of reasonable diligence, to communicate with the agent 
 or agents having actual possession or control of the 
 goods. 
 
 Sec. 33. That where an order bill is transferred for 
 value by delivery, and the indorsement of the transferor 
 is essential for negotiation, the transferee acquires a right 
 against the transferor to compel him to indorse the bill, 
 unless a contrary intention appears. The negotiation 
 shall take effect as of the time when the indorsement is 
 actually made. This obligation may be specifically en- 
 forced. 
 
 Sec. 34. That a person who negotiates or transfers for 
 value a bill by indorsement or delivery, unless a contrary 
 intention appears, warrants — 
 
 (a) That the bill is genuine ; 
 
 (b) That he' has a legal right to transfer it; 
 
 (c) That he has knowledge of no fact which would 
 impair the validity or worth of the bill ; 
 
 (d) That he has a right to transfer the title to the 
 goods, and that the goods are merchantable or fit for a 
 particular purpose whenever such warranties would have 
 been implied if the contract of the parties had been to 
 transfer without a bill the goods represented thereby. 
 
 Sec. 35. That the indorsement of a bill shall not make 
 the indorser liable for any failure on the part of the 
 carrier or previous indorsers of the bill to fulfill their 
 respective obligations. 
 
 Sec. 36. That a mortgagee or pledgee or other holder 
 of a bill for security who in good faith demands or re- 
 ceives payment of the debt for which such bill is security, 
 whether from a party to a draft drawn for such debt or 
 from any other person, shall not be deemed by so doing 
 to represent or warrant the genuineness of such bill or 
 the quantity or quality of the goods therein described. 
 
 Sec. 37. That the validity of the negotiation of a bill 
 is not impaired by the fact that such negotiation was a 
 
BILLS OP LADING ACT. 85 
 
 breach of duty on the part of the person making the nego- 
 tiation, or by the fact that the owner of the bill was de- 
 prived of the possession of the same by. fraud, accident, 
 mistake, duress, loss, theft, or conversion, if the person to 
 whom the bill was negotiated, or a person to whom the 
 bill was subsequently negotiated, gave value therefor in 
 good faith, without notice of the breach of duty, or fraud, 
 accident, mistake, duress, loss, theft, or conversion. 
 
 Sec. 38. That where a person, having sold, mortgaged, nefotiation"^"* 
 or pledged goods which are in a carrier's possession and 
 for which an order bill has been issued, or having sold, 
 mortgaged, or pledged the order bill representing such 
 goods, continues in possession of the order bill, the sub- 
 sequent negotiation thereof by that person under any 
 sale, pledge, or other disposition thereof to any person 
 receiving the same in good faith, for value and without 
 notice of the previous sale, shall have the same effect as 
 if the first purchaser of the goods or bill had expressly 
 authorized the subsequent negotiation. 
 
 Sec. 39. That where an order bill has been issued for Seller's uen. 
 goods no seller's lien or right of stoppage in transitu transitu^^^ '° 
 shall defeat the rights of any purchaser for value in good 
 faith to whom such bill has been negotiated, whether 
 such negotiation be prior or subsequent to the notification 
 to the carrier who issued such bill of the seller's claim 
 to a lien or right of stoppage in transitu. Nor shall the 
 carrier be obliged to deliver or justified in delivering the 
 goods to an unpaid seller unless such bill is first sur- 
 rendered for cancellation. 
 
 Sec. 40. That, except aS provided in section thirty- He^hfi^er^ °* 
 nine, nothing in this act shall limit the rights and rem- 
 edies of a mortgagee or lien holder whose mortgage or 
 lien on goods would be valid, apart from this act, as 
 against one who for value and in good faith purchased 
 from the owner, immediately prior to the time of their 
 delivery to the carrier, the goods which are subject to the 
 mortgage or lien and obtained possession of them. 
 
 Sec, 41. That any person who, knowingly or with in- coSntlrfeiunl 
 tent to defraud, falsely makes, alters, forges, counteisfeits, *'*"s. 
 prints or photographs any bill of lading purporting to 
 represent goods received for shipment among the several 
 States or with foreign nations, or with like intent utters 
 or publishes as true and genuine any such falsely altered, 
 forged, counterfeited, falsely printed or photographed 
 bill of lading, knowing it to be falsely altered, forged, 
 
86 
 
 BILLS OP LADING ACT. 
 
 Penalty. 
 
 Definitions. 
 
 Not retroac- 
 tlYe. 
 
 Sections sev- 
 erable. 
 
 counterfeited, falsely printed or photographed, or aids 
 in making, altering, forging, counterfeiting, printing or 
 photographing, or uttering or publishing the same, or 
 issues or aids in issuing or procuring the issue of, or nego- 
 tiates or transfers for value a bill which contains a false 
 statement as to the receipt of the goods, or as to any 
 other matter, or who, with intent to defraud, violates, or 
 fails to comply with, or aids in any violation of, or failure 
 to comply with any provision of this act, shall be guilty 
 of a misdemeanor, and, upon conviction, shall be pun- 
 ished for each offense by imprisonment not exceeding 
 five years, or by a fine not exceeding $5,000, or both. 
 
 Sec. 42. First. That in this act, unless the context of 
 subject matter otherwise requires — 
 
 "Action " includes counterclaim, set-off, and suit in 
 equity. 
 
 " Bill " means bill of lading governed by this act. 
 
 " Consignee " means the person named in the bill as 
 the person to whom delivery of the goods is to be made. 
 
 " Consignor " means the person named in the bill as 
 the person from whom the goods have been received for 
 shipment. 
 
 " Goods " means merchandise or chattels in course of 
 transportation or which have been or are about to be 
 transported. 
 
 " Holder " of a bill means a person who has both actual 
 possession of such bill and a right of property therein. 
 
 " Order " means an order by indorsement on the bill. 
 
 " Person " includes a corporation or partnership, or 
 two or more persons having a* joint or common interest. 
 
 To " purchase " includes to take as mortgagee and to 
 take as pledgee. 
 
 " State " includes any Territory, District, insular pos- 
 session, or isthmian possession. 
 
 Sec. 43. That the provisions of this act do not apply 
 to bills made and delivered prior to the taking effect 
 thereof. 
 
 Sec. 44. That the provisions and each part thereof and 
 the sections and each part thereof of this act are inde- 
 pendent and severable," and the declaring of any provision 
 or part thereof, or provisions or part thereof, or section 
 or part thereof, or sections or part thereof, unconstitu- 
 tional shall not impair or render unconstitutional any 
 other provision or part thereof or section or part thereof. 
 
GOVERNMENT-AIDED RAILROAD AND TELEGRAPH ACT. 87 
 
 Sec. 45. That this act shall take effect and be in force aatef ^ ^ '^ " " * 
 on and after the first day of January next after its pas- 
 sage. 
 
 Public, No. 239, approved August 29, 1916. 
 
 Government-Aided Railroad and Telegraph 
 Act. 
 
 AN ACT Supplementary to the Act of July first, eighteen hundred 
 and sixty-two, entitled "An Act to aid in the construction of a 
 railroad and telegraph line from the Missouri River to the Pacific 
 Ocean, and to secure to the Government the use of the same for 
 postal, military, and other purposes," and also of the Act of 
 July second, eighteen hundred and sijrty-four, and other Acts 
 amendatory of said first-named Act. 
 
 Be it enacted by tJie Senate and House of Representa- 
 tives of the United States of America in Congress assem- 
 bled, That aU railroad and telegraph companies to which aidld^^raliro'ad 
 the United States has granted any subsidy in lands or n „ e s^^m^us't 
 bonds or loan of credit for the construction of either rail- ^^fn'J^?f y^^ | 
 road or telegraph lines, which, by the Acts incorporating operate, 
 them, or by any Act amendatory or supplementary 
 thereto, are required to construct, maintain, or operate 
 telegraph lines, and' all companies engaged in operating 
 said railroad or telegraph lines shall forthwith and hence- 
 forward by and through their own respective corporate 
 officers and employees, maintain and operate, for rail- 
 road, governmental, commercial, and all other purposes, 
 telegraph lines, and exercise by themselves alone all the 
 telegraph franchises conferred upon them and obligations' 
 assumed by them under the Acts making the grants as 
 aforesaid. 
 
 Sec. 2. That whenever any telegraph company which ^ ^""Jra^ph 
 shall have accepted the provisions of title sixty-five of ""^®- 
 the Revised Statutes shall extend its line to any station 
 or office of a telegraph line belonging to any one of said 
 railroad or telegraph companies, referred to in the first 
 section of this Act, said telegraph company so extending 
 its line shall have the right and said railroad or telegraph 
 company shall allow the line of said telegraph company 
 so extending its line to connect with the telegraph line of 
 said railroad or telegraph company to wMcli it is ex- 
 tended at the place where their lines may meet, for the 
 prompt and convenient interchange of telegraph business 
 
88 GOVERNMENT-AIDED RAILROAD AND TELEGRAPH ACT. 
 
 tie^"requirtd!"' between said companies; and such railroad and telegraph 
 companies, referred to in the first section of this Act, 
 shall so operate their respective telegraph lines as to 
 afford equal facilities to all, without discrimination in 
 favor of or against any person, company, or corporation 
 whatever, and shall receive, deliver, and exchange busi- 
 ness with connecting telegraph lines on equal terms, and 
 affording equal facilities, and without discrimination for 
 or against any one of such connecting lines ; and such ex- 
 change of business shall be on terms just and equitable. 
 
 to^i°n'terltate ^^*^- ^- '^^^* ^^ ^^5^ ^^^^ railroad or telegraph com- 
 
 commi^ion ^^ pany referred to in the first section of this Act or com- 
 pany operating such railroad or telegraph line shall 
 refuse or fail, in whole or in part, to maintain and oper- 
 ate a telegraph line as provided in this Act and Acts to 
 which this is supplementary, for the use of the Govern- 
 ment or the public, for commercial and other purposes, 
 without discrimination, or shall refuse or fail to make or 
 continue such arrangements for the interchange of busi- 
 ness with any connecting telegraph company, then any 
 person, company, corporation, or connecting telegraph 
 company may apply for relief to the Interstate Com- 
 
 r. -^^ ™®- °JJ}i^ merce Commission, whose duty it shall thereupon be, 
 
 C o m m 1 s sion 7 ./ jr 7 
 
 piaint^it made" iiii<i6r such rulcs ar.d regulations as said Commission may 
 prescribe, to ascertain the facts, and determine and order 
 what arrangement is proper to be made in the particu- 
 lar case, and the railroad or telegraph company con- 
 cerned shall abide by and perform such order; and it 
 shall be the duty of the Interstate Commerce Commis- 
 sion, when such determination and order are made, to 
 notify the parties concerned, and, if necessary, enforce 
 the same by writ of mandamus in the courts of the 
 United States, in the name of the United States, at the 
 relation of either of said Interstate Commerce Commis- 
 commission gioncrs : Provided, That the said Commissioners may in- 
 
 may institute ' _ _ _ •' 
 
 *"?"'rrf «°" "^ stitute any inquiry, upon their own motion, in the same 
 manner and to the same effect as though complaint had 
 been made. 
 Duty of the gEC. 4. That in order to secure and preserve to the 
 
 Attorney Gen- -^ 
 
 &r&i under this United States the full value and benefit of its liens upon 
 all the telegraph lines required to be constructed by and 
 lawfully belonging to said railroad and telegraph com- 
 panies referred to in the first section of this Act, and to 
 have the same possessed, used, and operated in conformity 
 with the provisions of this Act and of the several Acts to 
 
GOVEENMENT-AIDED RAILROAD AND TELEGRAPH ACT. 89 
 
 which this Act is supplementary, it is hereby made the 
 duty of the Attorney General of the United States, by 
 proper proceedings, to prevent any unlawful interference 
 with the rights and equities of the United States under 
 this Act, and under the Acts hereinbefore mentioned, and 
 under all Acts of Congress relating to such railroads 
 and telegraph lines, and to have legally ascertained and 
 finally adjudicated all alleged rights of all persons and 
 corporations whatever claiming in any manner any con- 
 trol or interest of any kind in any telegraph lines or 
 property, or exclusive rights of way upon the lands of 
 said railroad companies, or any of them, and to have all 
 contracts and provisions of contracts set aside and an- 
 nulled which have been unlawfully and beyond their 
 powers entered into by said railroad or telegraph com- 
 panies, or any of them, with any other person, company, 
 or corporation. 
 
 Sec. 5. That any officer or agent of said railroad or fsEure^ti^om^ 
 telegraph companies, or of any company operating the Sr^vi^ons *of 
 railroads and telegraph lines of said companies, who shall order^'^^o?'' the 
 refuse or fail to operate the telegraph lines of said rail- cVm^merce 
 road or telegraph companies under his control, or which commission, 
 he is engaged in operating, in the manner directed in this 
 Act and by the Acts to which it is supplementary, or who 
 shall refuse or fail, in such operation and use, to afford 
 and secure to the Government and the public equal facili- 
 ties, or to secure to each of said connecting telegraph lines 
 equal advantages and facilities in the interchange of busi- 
 ness, as herein provided for, without any discrimination 
 whatever for or adverse to the telegraph line of any or 
 either of said connecting companies, or shall refuse to 
 abide by, or perform and carry out within a reasonable 
 time the order or orders of the Interstate Commerce Com- 
 mission, shall in every such case of refusal or failure be 
 guilty of a misdemeanor, and, on conviction thereof, shall 
 in every such case be fined in a sum not exceeding one 
 thousand dollars, and may be imprisoned not less than six 
 months; and in every such case of refusal or failure the 
 party aggrieved may not only cause the officer or agent 
 guilty thereof to be prosecuted under the provisions of 
 this section, but may also bring an action for the damages ^ ^°^°S^g l°l 
 sustained thereby against the company whose officer or gj-ouffht^" ^^ 
 agent may be guilty thereof, in the circuit or district 
 court of the United States in any State or Territory in 
 T/hich any portion of the road or telegraph line of said 
 
90 GOVEBNMENT-AIDED RAILROAD AND TELEGRAPH ACT. 
 
 company may be sitxiated ; and in case of suit process may 
 be served upon any agent of the company found in such 
 State or Territory, and such service shall be held by the 
 court good and sufficient. 
 
 ro?d 'and' tele" ^^^' ^- ^^^^ ^^ ^^^^ ^® t^^ ^^t^ ^^ ^'^^ ^^^ ^^^^ °^® 
 
 subject to "this ^^ *^^ af orcsaid railroad and telegraph companies, within 
 tes'of°contracts sixty days from and after the passage of this Act, to file 
 wuh the'^com- ^^^^ *^^ Interstate Commerce Commission copies of all 
 mission. contracts and agreements of every description existing 
 
 between it and every other person or corporation whatso- 
 ever in reference to the ownership, possession, mainte- 
 nance, control, use, or operation of any telegraph lines, or 
 property over or upon its rights of way, and also a report 
 describing with sufficient certainty the telegraph lines and 
 property belonging to it, and the manner in which the 
 same are being then used and operated by it, and the 
 telegraph lines and property upon its right of way in 
 which any other person or corporation claims to have a 
 title or interest, and setting forth the grounds of such 
 claim, and the manner in which the same are being then 
 used and operated; and it shall be the duty of each and 
 every one of said railroad and telegraph companies annu- 
 orts°to*th^e ^^y hereafter to report to the Interstate Commerce Com- 
 commission. mission, with reasonable fullness and certainty, the na- 
 ture, extent, value, and condition of the telegraph lines 
 and property then belonging to it, the gross earnings, and 
 all expenses of maintenance, use, and operation thereof, 
 and its relation and business with all connecting telegraph 
 companies during the preceding year, at such time and in 
 such manner as may be required by a system of reports 
 Penalties for -vvhich said Commission shall prescribe ; and if any of 
 
 refusal to make r j j 
 
 reports to Com- gaid railroad or telegraph companies shall refuse or fail 
 to make such reports or any report as may be called for 
 by said Commission, or refuse to submit its books and 
 records for inspection, such neglect or refusal shall oper- 
 ate as a forfeiture, in each case of such neglect or refusal, 
 of a sum not less than one thousand dollars nor more than 
 five thousand dollars, to be recovered by the Attorney 
 General of the United States, in the name and for the use 
 and benefit of the United States ; and it shall be the duty 
 of the Interstate Commerce Commission to inform the 
 Duty of At- Attorney General of all such cases of neglect or refusal, 
 
 torney General •' .,,,,. ■,,,■-,■■■,, 
 
 to prosecute, whose duty it shall be to proceed at once to judicially 
 enforce the forfeitures hereinbefore provided. 
 
LAKE ERIE AND OHIO EIVEB SHIP CANAL. 91 
 
 Sec. 7. That nothing in this Act shall be construed to 
 affect or impair the right of Congress, at any time here- grfis*'to°^^terI 
 after, to alter, amend, or repeal the said acts hereinbefore p^^^"**' °^ '^^' 
 mentioned; and this Act shall be subject to alteration, 
 amendment, or repeal as, in the opinion of Congress jus- 
 tice or the public welfare may require ; and nothing herein 
 contained shall be held to deny, exclude, or impair any 
 right or remedy in the premises now existing in the of ^"t"!?*!^ "^Ifov- 
 United States, or any authority that the Postmaster Gen- fe|?^|"' p""®" 
 eral now has under title sixty-five of the Revised Statutes 
 to fix rates, or, of the Government, to purchase lines as 
 provided under said title, or to have its messages given 
 precedence in transmission. 
 
 Public, No. 237, approved August 7, 1888. 
 
 Lake Erie and Ohio River Ship Canal. 
 
 AN ACT To incorporate the Lake Erie and Ohio River Ship Canal, 
 to define the powers thereof, and to facilitate interstate com- 
 merce. 
 
 Sec. 17. That the said canals shall be open to the use 
 and navigation of all suitable and proper vessels or other 
 water craft, by whomsoever owned or operated, upon fair 
 and equal terms, conditions, rates, tolls, and charges ; and 
 the said company may demand, take, and recover for its 
 own proper use, for all persons and things of whatsoever 
 description transported upon the said canals, feeders, and 
 other works, or in vessels and craft using the same, just 
 and reasonable charges, rates, and tolls; but all such 
 charges, rates, and tolls shall be equal to all persons, be^rea^slnawe" 
 vessels, and goods under certain classifications to be es- 
 tablished by the company and approved by the Interstate 
 Commerce Commission; and no rebate, reduction, draw- ap^pr'ov^ed'by 
 back, or discrimination of any sort on such charges, commission, 
 rates, and tolls shall ever be made directly or indirectly. 
 And the said charges, rates, and tolls for the ensuing year 
 shall be fixed, published, and posted on or in every place of^s"hedui^'°" 
 where they are to be collected, on or before the fifteenth 
 day of February of each year, and shall not be changed 
 except after thirty days' public notice, which notice shall 
 plainly state the changes proposed to be made in the 
 charges, rates, and tolls then in force and the time when 
 the changed charges, rates, and tolls will go into effect; 
 and the proposed changes shall be shown by printing new 
 
92 PARCEL POST. 
 
 schedules or shall be plainly indicated upon the schedules 
 in force at the time and kept open to public inspection: 
 mfy°modiify i°e" P^o'^ided, That the Interstate Commerce Commission 
 quiiements. j^g^y^ jjj j^g discretion and for good cause shown, allow 
 changes upon less notice than herein specified or modify 
 the foregoing requirements in respect to publishing and 
 posting of such schedules, either in particular instances 
 or by a general order applicable to special or peculiar 
 circumstances or conditions. 
 
 # * * * # 
 
 Public, No. 402, approved June 30, 1906. 
 
 Parcel Post. 
 
 AN ACT Making appropriations for the service of the Post Office 
 Department for the fiscal year ending June thirtieth, nineteen 
 hundred and thirteen, and for other purposes. 
 Sec. 8. (Parcel Post.) 
 
 thec"mmission '^^^ classification of articles mailable as well as the 
 zones'^etc^ in '^^ig^it limit, the rates of postage, zone or zones and other 
 parcel post. conditions of mailability under this Act, if the Postmas- 
 ter General shall find on experience that they or any of 
 them are such as to prevent the shipment of articles de- 
 sirable, or to permanently render the cost of the service 
 greater than the receipts of the revenue therefrom, he is 
 hereby authorized, subject to the consent of the Inter- 
 state Commerce Commission after investigation, to re- 
 form from time to time such classification, weight limit, 
 rates, zone or zones or conditions, or either, in order to 
 promote the service to the public or to insure the receipt 
 of revenue from such service adequate to pay the cost 
 thereof. 
 
 AN ACT Making appropriations for the service of the Post Office 
 Department for the fiscal year ending June thirtieth, nineteen 
 hundred and seventeen, and for other purposes. 
 
 » * * « # 
 
 Sec. 6. If the Postmaster General shall find on expe- 
 rience that the classification of articles mailable, as well 
 Classification as the Weight limit, or the rates of postage, zone or zones, 
 formed. and Other conditions of mailability, under section eight 
 
 of the act approved August twenty-fourth, nineteen hun- 
 dred and twelve, or any of them, are such as to prevent 
 the shipment of articles desirable, or to permanently ren- 
 
RAILWAY MAIL SERVICE PAY. 93 
 
 der the cost of the service greater than the receipts of 
 the revenue therefrom, he is hereby authorized to re-form 
 from time to time such classification, weight limit, rates, 
 zone or zones, or conditions, or either, in order to pro- 
 mote the service to the public or to insure the receipt of 
 revenue from such service adequate to pay the cost there- ^Proposed 
 
 JT-.-1TT mi 7 changes to be 
 
 01: Frovided, nowever, That before any change is here- approved by 
 
 . ,..,'. Commission. 
 
 after made m weight limit, rates of postage, or zone or 
 zones, by the Postmaster General, the proposed change 
 shall be approved by the Interstate Commerce Commis- 
 sion after thorough and independent consideration by 
 that body in such manner as it may determine. 
 
 # * » # « 
 
 Public, No. 336, approved August 24, 1912; Public, 
 No. 169, approved July 28, 1916. 
 
 Railway Mail Service Pay. 
 
 AN ACT Making appropriations for the service of the Post Office 
 Department for the fiscal year ending June thirtieth, nineteen 
 hundred and seventeen, and for other purposes. 
 
 Sec. 5. 
 
 s in 
 trains. 
 
 The provisions of this section respecting the rates of fj.^J^l\ 
 compensation shall not apply to mails conveyed under 
 special arrangement in freight trains, for which rates not 
 exceeding the usual and just freight rates may be paid, 
 in accordance with the classifications and tariffs approved 
 by the Interstate Commerce Commission. 
 
 Kailroad companies carrying the mails shall submit, ag? 0^®^"'* "°" 
 under oath, when and in such form as may be required by 
 the Postmaster General, evidence as to the performance 
 of service. 
 
 The Postmaster General shall, from time to time, re- f rom uiT'com" 
 quest information from the Interstate Commerce Com- mission, 
 mission as to the revenue received by railroad companies 
 from express companies for services rendered in the 
 transportation of express matter, and may, in his dis- 
 cretion, arrange for the transportation of mail matter 
 other than of the first class at rates not exceeding those 
 so ascertained and reported to him, and it shall be the 
 duty of the railroad companies to carry such mail matter 
 at such rates fixed by the Postmaster General. 
 
94 RAILWAY MAIL SERVICE PAY. 
 
 may° determine -^^^ Postmastcr General is authorized, in his discre- 
 
 certain rates. Hqj^^ iq petition the Interstate Commerce Commission for 
 the determination of a postal carload or less-than-carload 
 rate for transportation of mail matter of the fourth class 
 and periodicals, and may provide for and authorize such 
 transportation, when practicable, at such rates, and it 
 shall be the duty of the railroad companies to provide 
 and perform such service at such rates and on the condi- 
 tions prescribed by the Postmaster General. 
 
 ice^'°''*'^ ^^^^' '^^^ Postmaster General may, in his discretion, distin- 
 guish between the several classes of mail matter and 
 proAdde for less frequent dispatches of mail matter of the 
 third and fourth classes and periodicals when lower rates 
 for transportation or other economies may be secured 
 thereby without material detriment to the service. 
 
 .,»? =,?o?i'®^ *° The Postmaster General is authorized to return to the 
 mails, when practicable for the utilization of car space 
 paid for and not needed for the mails, postal cards, 
 stamped envelopes, newspaper wrappers, empty mail 
 bags, furniture, equipment, and other supplies for the 
 Postal Service. 
 
 ei?pty ma?! '^^ Postmaster General, in cases of emergency be- 
 
 bags. tween October first and April first of any year, may here- 
 
 after return to the mails empty mail bags and other 
 equipment theretofore withdrawn therefrom as required 
 by law, and, where such return requires additional au- 
 thorization of car space under the provisions of this 
 section, to pay for the transportation thereof as provided 
 for herein out of the appropriation for inland transpor- 
 tation by railroad routes. 
 
 maU^tScen °' '^^^ Postmastcr General may have the weights of mail 
 taken on railroad mail routes, and computations of the 
 average loads of the several classes of cars and other 
 computations for statistical and administrative purposes 
 made at such times as he may elect, and pay the expense 
 thereof out of the appropriation for inland transporta- 
 tion by railroad routes. 
 ^J^}^}^"^ Pending the decision of the Interstate Commerce Com- 
 
 method of mall ,.„ .-,-,,. , .. ,-■ 
 
 pay to be tern- nussion, as hereinafter provided for, the existing method 
 
 porarily main- ' x- 7 o 
 
 tained. and rates of railway mail pay shall remain in effect, ex- 
 
 cept on such routes or systems as the Postmaster General 
 shall select, and to the extent he may find it practicable 
 and necessary to place upon the space system of pay in 
 the manner and at the rates provided in this section, with 
 the consent and approval of the Interstate Commerce 
 
RAILWAY MAIL SERVICE PAY. 95 
 
 Commission, in order to properly present to the Inter- 
 state Commerce Commission the matters hereinafter re- 
 ferred thereto: Provided, That if the final decision of the 
 Interstate Commerce Commission shall be adverse to the 
 space system, and if the rates established by it under 
 whatever method or system is adopted shall be greater or 
 less than the rates under this section, the Postmaster Gen- 
 eral shall readjust the compensation of the carriers on 
 such selected routes and systems in accordance therewith, 
 from the dates on which the rates named in this section 
 became effective. 
 
 All railway common carriers are hereby required to and^'easonawe' 
 transport such mail matter as may be offered for trans- 
 portation by the United States in the manner, under the 
 conditions, and with the service prescribed by the Post- 
 master General and shall be entitled to receive fair and 
 reasonable compensation for such transportation and for 
 the service connected therewith. 
 
 The Interstate Commerce Commission is hereby em- emBowe™d^'°? 
 powered and directed as soon as practicable to fix and Jates'^^^^""^'''^ 
 determine from time to time the fair and reasonable rates 
 and compensation for the transportation of such mail 
 matter by railway common carriers and the service con- 
 nected therewith, prescribing the method or methods by 
 weight, or space, or both, or ^.otherwise, for ascertaining 
 such rate or compensation, and to publish the same, and 
 orders so made and published shall continue in force until 
 changed by the Commission after due notice and hearing. te'^onSderea!" 
 
 ,In fixing and determining the fair and reasonable rates 
 for such service the Commission shall consider the rela- 
 tion existing between the railroads as public service cor- 
 porations and the Government, and the nature of such 
 service as distinguished, if there be a distinction, from 
 the ordinary transportation business of the railroads. 
 
 The procedure for the ascertainment of said rates and 
 compensation shaU be as follows: 
 
 "Within three months from and after the approval of to\e furafshed 
 this act, or as soon thereafter as may be practicable, the ^^nwlL'"*^*^'" 
 Postmaster General shall file with the Commission a 
 statement showing the transportation required of all rail- 
 way common carriers, including the number, equipment, 
 size, and construction of the cars necessary for the trans- 
 action of the business; the character and speed of the 
 trains which are to carry the various kinds of mail; the 
 service, both terminal and en route, which the carriers are 
 
96 RAILWAY MAIL SEKVICE PAY. 
 
 to render; and all other information which may be mate- 
 rial to the inquiry, but such other information may be 
 filed at any time in the discretion of the Commission. 
 
 The Postmaster General is authorized to employ such 
 clerical and other assistance as shall be necessary to carry 
 out the provisions of this section, and to rent quarters in 
 Washington, District of Columbia, if necessary, for the 
 clerical force engaged thereon, and to pay for the same 
 out of the appropriation for inland transportation by 
 
 C 1 e r i c I 
 force. 
 
 mas^ter^en- railroad routcs. The Postmaster General shall file with 
 
 ^'■^•- the Commission a comprehensive plan for the transpor- 
 
 tation of the mails on said railways and shall embody 
 therein what he believes to be the reasonable rate or com- 
 pensation the said railway carriers should receive. 
 
 riSs.*''^^ '° ''^'^' Thereupon the Commission shall give notice of not less 
 than thirty days to each carrier so required to transport 
 mail and render service,, and upon a day to be fixed by 
 the Commission, not later than thirty days after the 
 expiration of the notice herein required, each of said car- 
 riers shall make answer and the Commission shall pro- 
 Hearings. gggfj yfHYi the hearing as now provided by law for other 
 
 hearings between carriers and shippers or associations. 
 Testimony. j^^ ^j^g provisions of the law for taking testimony, 
 securing evidence, penalties, and procedure are hereby 
 made applicable. 
 
 of*^ca?rieS"°" ^°^ *^^ purposc of determining and fixing rates or 
 compensation hereunder the Commission is authorized to 
 make such classification of carriers as may be just and 
 reasonable and, where just and equitable, fix general rates 
 applicable to all carriers in the same classification. 
 
 wefghing*^'°"^' Pending such hearings, and the final determination of 
 the question, if the Interstate Commerce Commission 
 shall determine that it is necessary or advisable, in order 
 to carry out the provisions of this section, to have addi- 
 tional and more frequent weighing of the mails for sta- 
 tistical purposes, the Postmaster General, upon request 
 of the Commission, shall provide therefor in the "manner 
 now prescribed by law, but such weighing need not be 
 for more than thirty days. 
 
 rates'^*'" "'^'"^ -^* ^^^ conclusion of the hearing the Commission shall 
 establish by order a fair, reasonable rate or compensation 
 to be received, at such stated times as may be named in 
 the order, for the transportation of mail matter and the 
 service connected therewith, and during the continuance 
 of the order the Postmaster General shall pay the carrier 
 
JftAILWAT MAIL SERVICE tAt. 97 
 
 from the appropriation herein made such rate or compen- 
 sation. 
 
 Either the Postmaster General or any such carrier may tio^*^^**"*"*' 
 at any time after the lapse of six months from the entry 
 of the order assailed apply for a reexamination, and 
 thereupon substantially similar proceedings shall be had 
 with respect to the rate or rates for service covered by 
 said application, provided said carrier or carriers have an 
 interest therein. 
 
 For the purposes of this section the Interstate Com- the°T!ommis- 
 merce Commission is hereby vested with all the powers *^°"- 
 which it is now authorized by law to exercise in the in- 
 vestigation and ascertainment of the justness and rea- 
 sonableness of freight, passenger, and express rates to be 
 paid by private shippers. 
 
 The Interstate Commerce Commission shall allow to „„h^'^^'^^'^^ 
 
 carriers. 
 
 railroad companies whose railroads were constructed in 
 whole or in part by a land grant made by Congress on 
 condition that the mails should be transported over their 
 roads at such price as Congress should by law direct only 
 eighty per centum of the compensation paid other rail- 
 roads for transporting the mails and all service by the 
 railroads in connection therewith. 
 
 The existing law for the determination of mail pay, mSi^jay tore? 
 except as herein modified, shall continue in effect until ™n u /"eason- 
 the Interstate Commerce Commission under the provi- ^^^ ""^'^^ ^""^ 
 sions hereof fixes the fair, reasonable rate or compensa- 
 tion for such transportation and service. 
 
 ***** 
 
 Public, No. 169, approved July 28, 1916. 
 
 64823°— 17 7 
 
Safety Appliance Acts (As Amended). 
 
 AN ACT To promote the safety of employees and travelers upon 
 railroads by compelling common carriers engaged in interstate 
 commerce to equip their cars with automatic couplers and con- 
 tinuous brakes and their locomotives with driving-wheel brakes, 
 and for other purposes. 
 
 Be it enacted by the Senate and House of Bepresenta- 
 tives of the United States of America in Congress assem- 
 bled, That from and after the first day of January, wiSei ind'trafn 
 eighteen hundred and ninety-eight, it shall be unlawful i>i"akes. 
 for any common carrier engaged in interstate commerce 
 by railroad to use on its line any locomotive engine in 
 moving interstate traffic not equipped with a power driy- 
 ing-wheel brake and appliances for operating the train- 
 brake system, or to run any train in such traffic after said 
 date that has not a sufficient number of cars in it so 
 equipped with power or train brakes that the engineer on 
 the locomotive drawing such train can control its speed 
 without requiring brakemen to use the common hand 
 brake for that purpose. 
 
 Sec. 2. That on and after the first day of January, coupYers. " ^"° 
 eighteen hundred and ninety-eight, it shall be unlawful 
 for any such common carrier to haul or permit to be 
 hauled or used on its line any car used in moving inter- 
 state traffic not equipped with couplers coupling auto- 
 matically by impact, and which can be uncoupled without 
 the necessity of men going between the ends of the ears. 
 
 Sec. 3. That when any person, firm, company, or cor- riera^may law- 
 poration engaged in interstate commerce by railroad shall J""/^?^?"®^!" 
 have equipped a sufficient number of its cars so as to com- J^J" ° ^, ^"J "^'^q' 
 ply with the provisions of section one of this Act, it may shippers, 
 lawfully refuse to receive from connecting lines of road 
 or shippers any cars not equipped sufficiently, in accord- 
 ance with the first section of this Act, with such power or 
 train brakes as will work and readily interchange with 
 the brakes in use on its own cars, as required by this Act. 
 
 Sec. 4. That from and after the first day of July, and htndhofd"^ 
 eighteen hundred and ninety-five, until otherwise ordered 
 by the Interstate Commerce Commission, it shall be un- 
 
 99 
 
100 SAFETY APPLIANCE ACTS. 
 
 lawful for any railroad company to use any car in inter- 
 state commerce that is not provided with secure grab 
 irons or handholds in the ends and sides of each car for 
 greater security to men in coupling and uncoupling cars, 
 hefghfof d?aw^ ^^^- ^- That withiu ninety days from the passage of 
 cars '"'^ '^'^^'^'^'^ ^^^ -^^^ *^® American Railway Association is authorized 
 hereby to designate to the Interstate Commerce Commis- 
 sion the standard height of drawbars for freight cars, 
 measured perpendicular from the level of the tops of the 
 rails to the centers of the drawbars, for each of the sev- 
 eral gauges of railroads in use in the United States, and 
 shall fix a maximum variation from such standard height 
 to be allowed between the drawbars of empty and loaded 
 cars. Upon their determination being certified to the 
 Interstate Commerce Commission, said Commission shall 
 at once give notice of the standard fixed upon to all com- 
 mon carriers, owners, or lessees engaged in interstate 
 commerce in the United States by such means as the 
 Commission may deem proper. But should said associa- 
 tion fail to determine a standard as above provided, it 
 shall be the duty of the Interstate Commerce Commission 
 to do so, before July first, eighteen hundred and ninety- 
 four, and immediately to give notice thereof as aforesaid. 
 And after July first, eighteen hundred and ninety-five, no 
 cars, either loaded or unloaded, shall be used in inter- 
 state traffic which do not comply with the standard above 
 provided for. 
 Penalty. Sec. 6. {As amended April 1, 1896.) That any such 
 
 common carrier using any locomotive engine, running 
 any train, or hauling or permitting to be hauled or used 
 on its line any car in violation of any of the provisions of 
 this Act, shall be liable to a penalty of one hundred dol- 
 lars for each and every such violation, to be recovered in 
 a suit or suits to be brought by the United States district 
 ■attorney in the district court of the United States having 
 jurisdiction in the locality where such violation shall 
 have been committed; and it shall be the duty of such 
 district attorney to bring such suits upon duly verified 
 information being lodged with him of such violation 
 having occurred; and it shall also be the duty of the 
 Interstate Commerce Commission to lodge with the 
 proper district attorneys information of any such viola- 
 Exceptions to tions as may come to its knowledge : Provided, That noth- 
 ing in this Act contained shall apply to trains composed 
 of four-wheel cars or to trains composed of eight-wheel 
 
SAFETY APPLIANCE ACTS. 101 
 
 standard logging ears where the height of such car from 
 top of rail to center of coupling does not exceed twenty- 
 five inches, or to locomotives used in hauling such trains 
 when such cai^s or locomotives are exclusivelv used for the 
 transportation of logs. 
 
 Sec. 7. That the Interstate Commerce Commission may ter^tltr °comI 
 from time to time upon full hearing and for good cause ^on'^\^°^tend 
 extend the period within which any common carrier shall era^to^confly 
 comply with the provisions of this Act. ■"^"* **>'« -*•<='• 
 
 Sec. 8. That any employee of any such common carrier nof deemed^to 
 who may be injured by any locomotive, car, or train in employment °' 
 use contrary to the provisions of this Act shall not be 
 deemed thereby to have assumed the risk thereby occa- 
 sioned, although continuing in the employment of such 
 carrier after the unlawful use of such locomotive, car, or 
 train had been brought to his knowledge. 
 
 Public, No. 113, approved March 2, 1893, amended 
 April 1, 1896. 
 
 Note. — ^Prescribed standard height of drawbars: Standard-gauge 
 railroads: "maximum 34§, minimum 31 J, inches; narrow-gauge rail- 
 roads: maximum 26, minimum 23, inches; 2-foot-gauge railroads: 
 maximum 17J, minimum 14J, inches. 
 
 AN ACT To amend an Act entitled "An Act to promote the safety 
 of employees and travelers upon railroads by compelling common 
 carriers engaged in interstate commerce to equip their cars with 
 automatic couplers and continuous brakes and their locomotives 
 with driving-wheel brakes, and for other purposes," approved 
 March second, eighteen hundred and ninety-three, and ajnended 
 April first, eighteen hundred and ninety-six. 
 
 Be it enacted hy the Senate and House of Representa- 
 tives of the United States of America in Congress as- 
 sembled. That the provisions &,nd requirements of the Act anle^^*'' appu- 
 entitled "An Act to promote the safety of employees and ^*amended*b*' 
 travelers upon railroads by compelling common carriers fg96°*sj^f?'* -^^ 
 engaged in interstate commerce to equip their cars with torie'slnd^Df'' 
 automatic couplers and continuous brakes, and their loco- ^^''=t °' Coium- 
 motives with driving-wheel brakes, and for other pur- p^.^ . . 
 poses," approved March second, eighteen hundred and s a f e t y appii- 
 
 Of lie 3 3fCl3 8.S to 
 
 ninety-three, and amended April first, eighteen hundred couplers shall 
 and ninety-six, shall be held to apply to common carriers cases when 
 
 ■' ' ■^'^ " couplersare 
 
 by railroads in the Territories and the District of Co- letger^'^'^ '^°' 
 lumbia and shall apply in all cases, whether or not the 
 couplers brought together are of the same kind, make, or 
 
102 SAFETY APPLIANCE ACTS. 
 
 type; and the provisions and requirements hereof and of 
 ance^acts^sffail ^^^^ -^^^^ relating to train brakes, automatic couplcifl, 
 equfpment" ^'f ^^^^ irons, and the height of drawbars shall be held to 
 enBag■ed^'n°in- ^PP^^ *o ^^^ trains, locomotives, tendei's, cars, and Similal" 
 merce!* '^°™" vehicles used on any railroad engaged in interstate com- 
 merce, and in the Territories and the District of Colum- 
 bia, and to all other locomotives, tenders, cars> and similar 
 Exceptions, vehicles used in connection therewith, excepting those 
 trains, cars, and locomotives exempted by the provisions 
 of section six of said Act of March second, eighteen hun- 
 dred and ninety-three, as amended by the Act of April 
 first, eighteen hundred and ninety-six, or which are used 
 upon street railways. 
 Power brakes. gEc. 2. That whenever, as provided in said Act, any 
 train is operated with power or train brakes, not less than 
 fifty per centum of the cars in such train shall have their 
 brakes used and operated by the engineer of the locomo- 
 tive drawing such train; and all power-br&fced cars in 
 such train which are associated together with said fifty 
 per centum shall have their brakes so used and operated T 
 and, to more fully carry into effect the objects of said Act, 
 Commission the Interstate Commerce Commission may, from, time to 
 
 may increase " ' 
 
 minimum per- time, after fuU hearing, increase the minimum pereent- 
 
 centageof' ^' -^ 
 
 power or train age of cars in any train required to be operated with 
 
 be used. power or train brakes which must have their brakes uSed 
 
 and operated as aforesaid; and failure to comply with 
 
 any such requirement of the said Interstate Commerce 
 
 Penalty. Commission shall be subject to the like penalty as failure 
 
 to comply vsdth any requirement of this section. 
 
 Sec. 3. That the provisions of this Act shall not take 
 
 effect until September first, nineteen hundred and three. 
 
 Nothing in this Act shall be held or construed to relieve 
 
 Provisions, any common Carrier, the Interstate OomAierCe Commis- 
 
 powers, duties, ■' „ . -, o, . t . • . . . « 
 
 riexiuirements.sion. or any United States district attorney from any of 
 
 and liabilities ' . ."' ,.,...,. . . 
 
 specifled in act the provisions, powcrs, duties, liabilities, or requiretaents 
 and a;ct oi Apr! gf said Act of March second, eighteen hundred and 
 to this Act ninety-three, as amended by the Act of April first, 
 eighteen hundred and ninety-six; and all of the provi- 
 sions, powers, duties, requirements, and liabilities of Said 
 Act of March second, eighteen htuidted and ninety-three, 
 as amended by the Act of April first, eighteen huirdred 
 and ninety-six, shall, except as specifically amended by 
 this Act, apply to this Act. 
 PubliC; No. 133, approved March 2, 1903, 
 
SAPEf? AfPLIANCE ACTS. 103 
 
 AN AGT To supplement "An Act to promote the safety of employees 
 and travelers upon railroads by compelling common carriers 
 engaged in interstate commerce to equip their cars with automatic 
 couplers and continuous bralcea and their locomotives with driving 
 wheel brakes and for other purposes," and other safety appliance 
 Acts,, and for other purposes. 
 
 Be it enacted by, the Senate and House of Bepresenta- 
 lives of the United States of America in Congress assem- 
 bled, That th.e provisions of this Act shall apply to every ^ i'^°rrappiica- 
 conunon carrier and every vehicle subject to the Act of ''^«- 
 March second,, eighteen hundred and ninety-three, as 
 amended April first, eighteen hundred and ninety-six, 
 and March second, nineteen hundred and three, commonly 
 known as the ' '- Safety Appliance Acts. ' ' 
 
 Sec. 2. That on and after July first, nineteen hundred 
 and eleven, it shall be unlawful for any common carrier 
 subject to the provisions of this Act to haul, or permit to 
 be hauled or used on its line any car subject to the pro- 
 visions of this Act not equipped with appliances provided 
 for in this Act, to wit : All cars must be equipped with eqSpped *with 
 secure sill steps and efficient hand brakes j all cars re- brakesfiadde"^ 
 quiring secure ladders and secure running boards shall bo\r<fs' an! 
 be equipped with such ladders and running boards, and ^^^ irons. 
 all cars having ladders shall also be equipped with secure 
 hand holds or grab irons on their roofs at the tops of such 
 ladders: Provided, That in the loading and hauling of 
 long comcmodities, requiring more than one car, the hand 
 brakes may be omitted on all save one of the cars while 
 they are thus combined for such purpose. 
 
 Sec. 3. That within six months from the passage of this to'd°e™?s^nate 
 Act the Interstate Commerce Commission, after hearing, s^™a,*'ioe^n" 
 shall designate the number, dimensions, location, and appu^Lumf'^ Se 
 manner of application of the appliances provided for by appliances, 
 section two of this Act and section four of the Act of 
 March second', eighteen hundred and ninety-three, and 
 shall give notice of such designation to all common car- 
 riers subject to the provisions of this Act by such means 
 as the Commission may deem proper, and thereafter said 
 number, location, dimensions, and manner of application 
 as designa,ted by said Commission shall remain as the 
 standards of equipment to be used on all cars subject to 
 the provisions of this Act, unless changed by an order of 
 said Interstate Commerce Commission, to be made after 
 fall hearing and for good cause shown; and failure to 
 comply with any sueh requirement of the Interstate Com- 
 
104 SAFETY APPLIANCE ACTS. 
 
 merce Commission shall be subject to a like penalty as 
 
 c o^m p'nlin"! failure to comply with any requirement of this Act : Pro- 
 
 t^nded.*** ®^" 'vided, That the Interstate Commerce Commission may, 
 
 upon full hearing and for good cause, extend the period 
 
 within which any common carrier shall comply with the 
 
 provisions of this section with respect to the equipment 
 
 of cars actually in service upon the date of the passage 
 
 m^^m^d i f°? of this Act, Said Commission is hereby given authority, 
 
 bai-s!** °"^™''" aft^^ hearing, to modify or change, and to prescribe the 
 
 standard height of drawbars and to fix the time within 
 
 which such modification or change shall become effective 
 
 and obligatory, and prior to the time so fixed it shall be 
 
 s t^a'n d a r d Unlawful to use any car or vehicle in interstate or foreign 
 
 blrlYeglh™^' ti'affic wliich does not comply with the standard now fixed 
 
 or the standard so prescribed, and after the time so fixed 
 
 it shall be unlawful to use any car or vehicle in interstate 
 
 or foreign traffic which does not comply with the standard 
 
 so prescribed by the Commission. 
 
 V i'oTa ITo n°of ^^^- ^- That' any common carrier subject to this Act 
 
 ?W3°Act°"^ °* using, hauling, or permitting to be used or hauled on its 
 
 line any car subject to the requirements of this Act not 
 
 equipped as provided in this Act shall be liable to a 
 
 penalty of one hundred dollars for each and every such 
 
 violation, to be recovered as provided in section six of the 
 
 Act of March second, eighteen hundred and ninety-three, 
 
 as amended April first, eighteen hundred and ninety-six: 
 
 Provided, That where any car shall have been properly 
 
 equipped, as provided in this Act and the other Acts 
 
 mentioned herein, and such equipment shall have be- 
 
 Def active cars come defective or insecure while such car was being used 
 
 may be naulea ^ 
 
 *°, ^fti^^L^ ^7 such carrier upon its line of railroad, such car 
 pair point. j^ay be hauled from the place where such equipment was 
 first discovered to be defective or insecure to the nearest 
 available point where such car can be repaired, without 
 liability for the penalties imposed by section four of this 
 Act or section six of the Act of March second, eighteen 
 hundred and ninety-three, as amended by the Act of April 
 first, eighteen hundred and ninety-six, if such movement is 
 necessary to make such repairs and such repairs can not 
 be made except at such repair point; and such movement 
 rei^ffiTed^f^r "m ^^ hauling of such Car shall be at the sole risk of the car- 
 death or Iniury^ "^^' aii<i nothing in this section shall be construed to re- 
 lieve such carrier from liability in any remedial action 
 for the death or injury of any railroad employee caused 
 to such employee by reason of or in connection with the 
 
SAFETY APPLIANCE ACTS. 105 
 
 movement or hauling of such car with equipment which 
 is defective or insecure or which is not maintained in ac- 
 cordance with the requirements of this Act and the other 
 Acts herein referred to ; and nothing in this proviso shall chSns""^ ^^ 
 be construed to permit the hauling of defective cars by 
 means of chains instead of drawbars, in revenue trains or 
 in association with other cars that are commercially used, 
 unless such defective ears contain live stock or " per- 
 ishable " freight. 
 
 Sec. 5. That except that, within the limits specified in reu5fed®"r "m 
 the preceding section of this Act, the movement of a car F^^f-'^Jf- 1?°®?^ 
 with defective or insecure equipment may be made with- ^''o''^ named, 
 out incurring the penalty provided by the statutes, but 
 shall in all other respects be unlawful, nothing in this Act 
 shall be held or construed to relieve any common carrier, 
 the Interstate Commerce Commission, or any United 
 States attorney from any of the provisions, powers, duties, 
 liabilities, or requirements of said Act of March second, 
 eighteen hundred and ninety-three, as amended by the 
 Acts of April first, eighteen hundred and ninety-six, and 
 March second, nineteen hundred and three; and, except 
 as aforesaid, all of the provisions, powers, duties, require- 
 ments, and liabilities of said Act of March second, eight- 
 een hundred and ninety-three, as amended by the Acts of 
 April first, eighteen hundred and ninety-six, and March 
 second, nineteen hundred and three, shall apply to this 
 Act. 
 
 Sec. 6. That it shall be the duty of the Interstate Com- Enforcement 
 merce Commission to enforce the provisions of this Act, 
 and all powers heretofore granted to said Commission are 
 hereby extended to it for the purpose of the enforcement 
 of this Act, 
 
 That the jurisdiction of the Interstate Commerce Com- mfy°ext"nf e°f" 
 mission to extend the period within which any common s^uroieml'ntory 
 carrier shall comply with the provisions of section three ■*-°'- 
 of the Act entitled "An Act to supplement 'An Act to 
 promote the safety of employees and travelers upon rail- 
 roads by compelling common carriers engaged in inter- 
 state commerce to equip their cars with automatic cou- 
 plers and continuous brakes and their locomotives with 4^ -^g^f / ^^'■'^'^ 
 driving-wheel brakes, and for other purposes,' and other 
 safety-appliance acts, and for other purposes," approved 
 April fourteenth, nineteen hundred and ten, shall apply 
 to cars actually placed in service between the date of the 
 passage of said Act and the first day of July, nineteen 
 
106 
 
 ACCIDENT RPPORTS ACT. 
 
 hundred and eleven, in the same manner and to the same 
 extent that it applies to cars actually in service upon the 
 date of the passage of said Act. [36 Stat. L., 1397.] 
 
 Public, No. 133, approved April 14, 1910; PubUc, No. 
 525, approved March 4, 1911. 
 
 offn'Sp^t^f* Sundry civil act (appropriations) of June 28, 1902, 
 authorizes Commission to employ " inspectors to execute 
 and enforce the requirements of the safety-appliance act." 
 
 Section 4 of an act of September €, 1916, amending the 
 Judicial Code, makes judgments and decrees of the cir- 
 cuit courts of appeals in all proceedings and causes aris- 
 ing under the safety appliance acts final, but ex-cepts writs 
 of certiorari of the Supreme Court. (39 Stat. L., 726.) 
 
 Accident Reports Act. 
 
 AN ACT Requiring common carriers engaged in interstate and 
 foreign commerce to make full reports of all accidents to the 
 Interstate Commerce Commission, and authorizing investigations 
 thereof by said Commission. 
 
 Be it enacted by the Senate and House of Eepresenta- 
 tives of the United States of America in Congress assem- 
 hled, That it shall be the duty of the general manager, 
 superintendent, or other proper officer of every common 
 carrier engaged in interstate or foreign comimerce by rail- 
 ports"'of '^ rau^ ^°^^ *^ make to the Interstate Commerce Commission, at 
 way accidents, jtg office in Washington, District of Columbia, a monthly 
 report, under oath, of all collisions, derailments, or other 
 accidents resulting in injury to persons, equipment, or 
 roadbed arising from the operation of such railroad 
 under such rules and regulations as may be prescribed by 
 the said Commission, which report shall state the nature 
 and causes thereof and the circumstances connected there- 
 with: Provided, That hereafter all said carriers shaU be 
 relieved from the duty of reporting accidents in their an- 
 nual financial and operating reports made to the Com- 
 mission, 
 ^^"^^^^t Sec 2. That any common carrier failing to make such 
 da^'^after^end ^^P^^t within thirty days after the end of any month 
 amf W "anor ®^^^^ ^^ deemed guilty of a misdemeanor, a,nd upon con- 
 viction thereof by a court of competent jurisdiction shall 
 
IdctDENT REPORTS ACT, lOf 
 
 be punished by a fine of not more than one hundred dol- Penalty, 
 lars for each and every offense and for every day during 
 which it sha,ll fail to make such report after the time 
 herein specified for making the same. 
 
 Sec. 3. That the Interstate Commerce Commission com°Sion*to 
 shall have authority to investigate all collisions, derail- c"a|^ts^*'® ^' 
 ments, or other accidents resulting in serious injury to 
 person or to the property of a railroad occurring on the 
 line of any common carrier engaged in interstate or 
 foreign commerce by railroad. The Commission, or any 
 impartial investigator thereunto authorized by said Com- 
 mission, shall have authority to investigate such col- 
 lisions, derailments, or other accidents aforesaid, and all 
 the attending facts, conditions, and circumstances, and 
 for that purpose may subpcena witnesses, administer 
 oaths, take testimony, and require the production of Testimony. 
 books, papers, orders, memoranda, exhibits, and other 
 evidence, and shall be provided by said carriers with all 
 reasonable facilities: Provided, That when such accident „ Ft'l''P®'l^*'?2 
 is investigated by a commission of the State in which it commissions. 
 occurred, the Interstate Commerce Commission shall, if 
 conyenient, make any investigation it may have previ- 
 ously determined upon, at the same time as, and in con- 
 nection with, the state commission investigation. Said in^Ls'tfgations. 
 Conunission shall, when it deems it to the public interest, 
 make reports of such investigations, stating the cause of 
 accident, together with such recommendations as it deems 
 proper. Such reports shall be made public in such man- 
 ner as the Commission deems proper. 
 
 Sec. 4. That neither said report nor any report of said to^be°u*s\d"°n 
 investigation nor any part thereof shall be admitted as damage suits. 
 evidence or used for any purpose in any suit or action for 
 damages growing out of any matter mentioned in said 
 report or investigation. 
 
 Sec. 5. That the Interstate Commerce Commission is por"'"'" °' ^^' 
 authorized tp prescribe for such common carriers a 
 method and form for making the reports hereinbefore 
 provided. 
 
 Sec. 6. That the Act entitled ''An Act requiring com- prSr^^c^f ' °' 
 mon carriers engaged in interstate commerce to make full 
 reports of all accidents to the Interstate Commerce Com- 
 mission," approved March third, nineteen hundred and 
 one, is hereby repealed. 
 
108 MEDALS OP HONOR ACT. 
 
 co'ii^lrce-^and ^Ec. 7. That the term " interstate commerce," as used 
 m'e'r'fe "°°d^I ^^ ^^^^ Act, shall include transportation from any State 
 flnea. OP Territory or the District of Columbia to any other 
 
 State or Territory or the District of Columbia, and the 
 term " foreign commerce," as used in this Act, shall in- 
 clude transportation from any State or Territory or the 
 District of Columbia to any foreign country and from 
 any foreign country to any State or Territory or the Dis- 
 trict of Columbia, 
 fe^r^*"'^'' Sec. 8. That this Act shall take effect sixty days after 
 its passage. 
 Public, No. 165, approved May 6, 1910. 
 
 Medals of Honor Act. 
 
 AN ACT To promote the security of travel upon railroads engaged 
 in interstate commerce, and to encourage the saving of life. 
 
 Be it enacted by the Senate and House of Representa- 
 tives of the United States of America in Congress assem- 
 on^raii??aYs."^ ^^^'^' '^^^^ ^^^ President of the United States, be, and he 
 horfor fo^^ ^ °^ ^^ hereby, authorized to cause to be prepared bronze 
 medals of honor, with suitable emblematic devices, which 
 shall be bestowed upon any person who shall hereafter, 
 by extreme daring, endanger their own lives in saving, or 
 endeavoring to save, lives from any wreck, disaster, or 
 grave accident, or in preventing or endeavoring to pre- 
 vent such wreck, disaster, or grave accident, upon any 
 railroad within the United States engaged in interstate 
 Proof^"' commerce: Provided, That no award of said medal shall 
 
 be made to any person until sufScient evidence of his de- 
 serving shall have been furnished and placed on file, 
 under such regulations as may be prescribed by the 
 President of the United States. 
 
 Sec. 2. That the President of the United States be, and 
 
 he is hereby, authorized to issue to any person to whom a 
 
 medal of honor may be awarded under the provisions of 
 
 Rosettes and t^jg Agt a rosettc or knot, to be worn in lieu of the medal, 
 
 ribbons. -i ■,-,■, -, 
 
 and a ribbon to be worn with the medal; said rosette or 
 
 knot and ribbon to be each of a pattern to be prescribed 
 
 Proviso. by the President of the United States: Provided, That 
 Issue of new •' ' 
 
 ribbons. whenever a ribbon issued under the provisions of this Act 
 
 shall have been lost, destroyed, or rendered unfit for use 
 
 without fault or neglect on the part of the person to whom 
 
 it was issued, a new ribbon shall be issued to such person 
 
 without charge therefor. 
 
MEDALS OP HONOR ACT. 109 
 
 Sec. 3. That the appropriations for the enforcement expenses."' °' 
 and execution of the provisions of the Acts to promote 
 the safety of employees and travelers upon railroads are 
 hereby made available for carrying out the provisions of 
 this Act. 
 
 Public, No. 98, approved February 23, 1905. 
 
 REGULATIONS Governing the award of life-saving medals under 
 the foregoing Act. Made by the President of the United States 
 on March 29, 1905, and amended April 22, 1913. 
 
 1. Applications for medals under this Act should be f o ^ m'e'd a°"s^ 
 addressed to and filed with the Interstate Commerce ^""^ ™ade. 
 Commission, at the city of Washington, D. C. Satisfac- 
 tory evidence of the facts upon which the application is 
 
 based must be filed in each case. This evidence should 
 be in the form of affidavits made by eyewitnesses, of 
 good repute and standing, testifying of their own knowl- 
 edge. - The opinion of witnesses that the person for whom 
 an award is sought acted with extreme daring and en- 
 dangered his life is not sufficient, but the affidavits must 
 set forth the facts in detail, and show clearly in what 
 manner and to what extent life was endangered and 
 extreme daring exhibited. The railroad upon which the 
 incident occurred, the date, time of day, condition of the 
 weather, the names of all persons present when practi- 
 cable, and other pertinent circumstances should be stated. 
 The affidavits should be made before an officer duly au- afMavUs*^ °* 
 thorized to administer oaths and be accompanied by the 
 certificate of some United States official of the district 
 in which the affiants reside, such as a judge or clerk of 
 United States court, district attorney, or postmaster, to 
 the effect that the affiants are reputable and creditable 
 persons. If the affidavits are taken before an officer with- 
 out an official seal, his official character must be certified 
 by the proper officer of a court of record under the seal 
 thereof. 
 
 2. Applications for medals, together with all affidavits cons°der' "ppu- 
 and other evidence received in connection therewith, shall cations. 
 
 be referred to a committee of three persons, consisting of 
 the secretary of the Commission, the chief inspector of 
 safety appliances, and the assistant chief inspector of 
 safety appliances. This committee shall carefully con- 
 sider each application presented, and after thoroughly 
 weighing the evidence, shall prepare an abstract or brief 
 
110 HOURS OF SERVICE ACf. 
 
 covering the case, and file the same, together with the 
 committee's recommendation, with the Commission, which 
 
 miuel'" °' '^°™" ^"6^ ^^^ recommendation shall be transmitted by the 
 Commission to the President for his approval. The com- 
 mittee may, with the approval of the Commission, direct 
 any inspector in the employ of the Commission to pro- 
 
 vestfea°rons.'°" ^^^^ ^ *^^ locality where the service was performed for 
 which a medal is claimed, and make a personal investi- 
 gation and report upon the facts of the case, which report 
 shall be filed and made a part of the evidence considered 
 by the committee. 
 
 apVro'v^afof ^- Upon final approval of the Committee's recommenda- 
 
 tioi^ °"^*"^*" tion by the President the Commission shall take such 
 measures to carry the recommendation into effect as the 
 President may direct. 
 
 medals^™ ^°^ ^' '^^^ Commission shall cause designs to be prepared 
 for the medal, rosette, and ribbon provided for by the 
 Act, which designs shall he submitted to the President for 
 his approval. 
 
 Hours of Service Act (As Amended). 
 
 AN ACT To promote the safety of employees and travelers upon 
 railroads by limiting the hours of service of employees thereon. 
 
 Be it enacted hy tJie Senate and House of Bepresenta- 
 tives of the United States of America in Congress assem- 
 
 riCT°'a"Tem- ^^^^) That the provisions of this Act shall apply to any 
 
 to°Act^ s"Wect common carrier or carriers, their officers, agents, and em- 
 ployees, engaged in the transportation of passengers or 
 property by railroad in the District of Columbia or any 
 Territory of the United States, or from one State or 
 Territory of the United States or the District of Colum- 
 bia to any other State or Territory of the United States 
 or the District of Columbia, or from any place in the 
 United States to an adjacent foreign country, or from 
 any place in the United States through a foreign country 
 Meaning of to any Other place in the United States. The terra " rail- 
 
 road." road " as used in this Act shall include all bridges and 
 
 ferries used or operated in connection with any railroad, 
 and also all the road in use by any common carrier op- 
 erating a railroad, whether owned or operated under a 
 Meaning ^^of contract, agreement, or lease; and the term " employees " 
 
 ees." as used in this Act shall be held to mean persons actually 
 
 engaged in or connected with the movement of any train. 
 
HOURS OF SERVTOE ACT. Ill 
 
 Sec. 2. That it shall be unlawful for any common car- th!"'rnlx?mum 
 rier, its officers or agents, subject to this Act to require or service ° of 
 permit any employee subject to this Act to be or remain trainmen. 
 on duty for a longer period than sixteen consecutive 
 hours, and whenever any such employee of such common 
 carrier sliaU have heen (continuously on duty for sixteen 
 hours he shall be relieved and not required or permitted tive^'hours* oa 
 again to go on duty until he has had at least ten consecu- ^^*-y- 
 tive hours off duty; and no such employee who has been 
 on duty sixteen hours in the aggregate in any twenty- 
 four-hour period shall be required or permitted to con- 
 tinue or again go on duty without having had at least 
 eight consecutive hours off duty : Provided, That no op- of ^f e^/e\'raph 
 erator, train dispatcher, or other employee who by the operators''^""* 
 use of the telegraph or telephone dispatches, reports, 
 transmits, receives, or delivers orders pertaining to or 
 affecting train movements shall be required or permitted 
 to be or remain on duty for a longer period than nine 
 hours in any twenty-four-hour period in all towers, 
 offices, places, and stations continuously operated ni-ght 
 and day, nor for a longer period than thirteen hours in 
 all towers, offices, places, and stations operated only dur- 
 ing the daytime, except in case of emergency, when the 
 employees named in this proviso may be permitted to be 
 and remain on duty for four additional hours in a twenty- 
 four-hour period or not exceeding three days in any 
 week: Provided further, The Interstate Commerce Com- may*extend^pe" 
 mission may after full hearing in a particular case and '■*°^- 
 for good cause shown extend the period within which a 
 common carrier shall comply with the provisions of this 
 proviso as to such case. 
 
 Sec. 3 (as amended May 4, 1916). That any such com- yi^lSo"'' '"^ 
 mon carrier, or any officer or agent thereof, requiring or 
 permitting any employee to go, be, or remain on duty in 
 violation of the second section hereof shall be liable to a 
 penalty of not less than $100 nor more than $500 for each 
 and every violation, to be recovered in a suit or suits to be 
 brought by the United States district attorney in the dis- Prosecutions, 
 trict court of the United States having jurisdiction in the 
 locality where such violations shall have been committed; 
 and it shall be the duty of such district attorney to bring 
 such suit upon satisfactory information being lodged with 
 him ; but no such suit shall be brought after the expiration 
 of one year from the date of such violation ; and it shall 
 also be the duty of the Interstate Commerce Commission 
 
112 
 
 ASH-PAN ACT. 
 
 to lodge with the proper district attorney information of 
 any such violations as may come to its knowledge. In all 
 prosecutions under this act the common carrier shall be 
 deemed to have knowledge of all acts of all its officers and 
 
 acSdtnti.'^^''^* agents: Provided, That the provisions of this act shall 
 not apply in any case of casualty or unavoidable accident 
 or the act of God ; nor where the delay was the result of a 
 cause not known to the carrier or its officer or agent in 
 charge of such employee at the time said employee left a 
 
 crews.^ '^ ^ ' ° ^ terminal, and which could not have been foreseen: Pro- 
 vided further, That the provisions of this act shall not 
 
 uveiaect°^^' ^VP^Y to the crews of wrecking or relief trains. That 
 nothing in this act shall affect, or be held to affect, any 
 suit that may be instituted for recovery of penalty for 
 violation of the act hereby amended occurring prior to the 
 approval of this act, or any suit for such penalty or grow- 
 ing out of alleged violation of the act hereby amended 
 which may be pending in any court at the time of the 
 approval of this act. 
 Enforcement gsc. 4. It shall be the duty of the Interstate Commerce 
 Commission to execute and enforce the provisions of this 
 act, and aU powers granted to the Interstate Commerce 
 Commission are hereby extended to it in the execution of 
 this act. 
 Effective. Sec. 5. That this act shall take effect and be in force 
 
 one year after its passage. 
 
 Public, No. 274, approved March 4, 1907, 11.50 a. m.; 
 and Public, No. 68, approved May 4, 1916. 
 
 Section 4 of an act of September 6, 1916, amending the 
 Judicial Code, makes judgments and decrees of the cir- 
 cuit courts of appeals in all proceedings and causes aris- 
 ing under the hours of service Act final, but excepts writs 
 of certiorari of the Supreme Court. (39 Stat. L., 726.) 
 
 Ash-Pan Act. 
 
 Xn act To promote the safety of employees on railroads. 
 
 Be it enacted hy the Senate and House of Bepresenta- 
 Ash -^pan fi^gs of the United States of America in Congress assem- 
 
 equipment in ' , „ -■ „ -r • 
 
 interstate })ied, That on and after the first day of January, nineteen 
 
 commerce. ' i » i » 
 
 hundred and ten, it shall be unlawful for any common 
 
ASH-PAN ACT. 113 
 
 carrier engaged in interstate or foreign commerce by rail- 
 road to use any locomotive in moving interstate or foreign 
 traffic, not equipped with an ash pan, which can be 
 dumped or emptied and cleaned without the necessity of 
 any employee going under such locomotive. 
 
 Sec. 2. That on and after the first day of January, equipment*' 1 S 
 nineteen hundred and ten, it shall be unlawful for any |,f^[^f°['^| ^^ 
 common carrier by railroad in any Territory of the lum^ia. 
 United States or the District of Columbia to use any 
 locomotive not equipped with an ash pan, which can be 
 dumped or emptied and cleaned without the necessity 
 of any employee going under such locomotive. 
 
 Sec. 3. That any such common carrier using any loco- Penalties, 
 motive in violation of any of the provisions of this Act 
 shall be liable to a penalty of two hundred dollars for 
 each and every such violation, to be recovered in a suit or 
 suits to be brought by the United States district attorney 
 in the district court of the United States having jurisdic- 
 tion in the locality where such violation shall have been 
 committed; and it shall be the duty of such district Enforcement, 
 attorney to bring such suits upon duly verified informa- 
 tion being lodged with him of such violation having 
 occurred; and it shall also be the duty of the Interstate 
 Commerce Commission to lodge with the proper district to^io<i"'"-^£'°" 
 attorneys information of any such violations as may ™ation. 
 come to its knowledge. 
 
 Sec. 4. That it shall be the duty of the Interstate Com- ed °toTomm"sI 
 
 merce Commission to enforce the provisions of this Act, ^*°"- 
 
 and all powers heretofore granted to said Commission are 
 
 hereby extended to it for the purpose of the enforcement 
 
 of this Act. 
 
 Sec. 5. That the term " common carrier " as used in Receivers in- 
 cluded. 
 
 this Act shall include the receiver or receivers or other 
 persons or corporations charged with the duty of the 
 management and operation of the business of a common 
 carrier. 
 
 Sec. 6. That nothing in this Act contained shall apply „„"^^®" ^^^ 
 
 o fi- J pan is not nec- 
 
 to any locomotive upon which, by reason of the use of essary. 
 oil, electricity, or other such agency, an ash pan is not 
 necessary. 
 
 Public, No. 165, approved May 30, 1908. 
 64823°— 17 8 
 
114 TRANSPORTATION OF EXPLOSIVES ACT. 
 
 Transportation of Explosives Act. 
 
 AN ACT To promote the safe transportation in interstate com- 
 merce of explosives and other dangerous articles, and to provide 
 penalties for its violation. 
 
 By an Act entitled "An Act to codify, revise, and 
 amend the penal laws of the United States," approved 
 March 4, 1909, to take effect and be in force on and after 
 the first day of January, 1910, the Act entitled "An Act 
 to promote the safe transportation in interstate commerce 
 of explosives and other dangerous articles, and to provide 
 penalties for its violation," approved May 30, 1908, is 
 repealed, and the following sections of said Act to codify, 
 revise, and amend the penal laws of the United States are 
 substituted therefor : 
 ete.f no^'^J^fe ^^- ^^^- ^* ^^^^ ^^ Unlawful to transport, carry, or 
 seng^r^ vehKjf es convcy, any dynamite, gunpowder, or other explosives, 
 for hire. between a place in a foreign country and a place within or 
 
 subject to the jurisdiction of the United States, or be- 
 tween a place in any State, Territory, or District of the 
 United States, or place noncontiguous to but subject to 
 the jurisdiction thereof, and a place in any other State, 
 Territory, or District of the United States, or place non- 
 contiguous to but subject to the jurisdiction thereof, on 
 any vessel or vehicle of any description operated by a 
 common carrier, which vessel or vehicle is carrying pas- 
 sengers for hire: Provided, That it shall be lawful to 
 transport on any such vessel or vehicle small arms ammu- 
 nition in any quantity, and such fuses, torpedoes, rockets, 
 or other signal devices, as may be essential to promote 
 safety in operation, and properly packed and marked 
 samples of explosives for laboratory examination, not 
 exceeding a net weight of one-half pound each, and not 
 exceeding twenty samples at one time in a single vessel 
 or vehicle; but such samples shall not be carried in that 
 part of a vessel or vehicle which is intended for the trans- 
 portation of passengers for hire: Provided further. That 
 nothing in this section shall be construed to prevent the 
 transportation of military or naval forces with their 
 accompanying munitions of war on passenger equipment 
 vessels or vehicles. 
 Interstate gj;c. 233. The Interstate Commerce Commission shall 
 
 Commerce 
 
 Commission to formulate regulations for the safe transportation of ex- 
 
 m £b iv 6 rcguio-" ^ 
 
 tions for trans- plosives, wMch shall be binding upon aU common carriers 
 
 portation of ex- ^ , ' or- 
 
 plosives. engaged in interstate or foreign commerce which trans- 
 
TRANSPORTATION OF EXPLOSIVES ACT. 115 
 
 port explosives by land. Said Commission, of its own 
 motion, or upon application made by any interested 
 party, may make changes or modifications in such, regula- 
 tions, made desirable by new information or altered con- 
 ditions. Such regulations shall be in accord with the 
 best known practicable means for securing safety in 
 transit, covering the packing, marking, loading, handling 
 while in transit, and the precautions necessary to deter- 
 mine whether the material when offered is in proper 
 condition to transport. Such regulations, as well as all 
 changes or modifications thereof, shall take effect ninety 
 days after their formulation and publication by said Com- 
 mission and shall be in effect until reversed, set aside, or 
 modified. 
 
 Sec. 234. It shall be unlawful to transport, carry, or g^^^^^^^ ""tc" 
 convey, liquid nitroglycerin, fulminate in bulk in dry ^^d^on^certam 
 condition, or other like explosive, between a place in a vehicles. 
 foreign country and a place within or subject to the 
 jurisdiction of the United States, or betweeen a place in 
 one State, Territory, or District of the United States, or 
 a place noncontiguous to but subject to the jurisdiction 
 thereof, and a place in any other State, Territory, or Dis- 
 trict of the United States, or place noncontiguous to but 
 subject to the jurisdiction thereof, on any vessel or ve- 
 hicle of- any description operated by a common carrier in 
 the transportation of passengers or articles of commerce 
 by land or water. 
 
 Sec. 235. Every package containing explosives or other pa^^ge^of eS- 
 dangerous articles when presented to a common carrier Jeptive^'mark- 
 for shipment shall have plainly marked on the outside '"^• 
 thereof the contents thereof ; and it shall be unlawful for 
 any personate deliver, or cause to be delivered, to any 
 "common carrier engaged in interstate or foreign com- 
 merce by land or water, for interstate or foreign trans- 
 portation, or to carry upon any vessel or vehicle engaged 
 in interstate or foreign transportation, any explosive, or 
 other dangerous article, under any false or deceptive 
 marking, description, invoice, shipping order, or other 
 declaration, or without informing the agent of such car- 
 rier of the true character thereof, at or before the time 
 such delivery or carriage is made. Whoever shall know- 
 ingly violate, or cause to be violated, any provision of this 
 section, or of the three sections last preceding, or any 
 regulation made by the Interstate Commerce Commis- 
 sion in pursuance thereof, shall be fined not more than < 
 
116 
 
 BOILER INSPECTION ACT. 
 
 two thousand dollars, or imprisoned not more than 
 eighteen months, or both. 
 ii^^^*n°Iur'V ^^°- 236. When the death or bodily injury of any per- 
 t^anlportaUoS' ^°^ ^^ caused by the explosion of any article named in 
 the four sections last preceding, while the same is being 
 placed upon any vessel or vehicle to be transported in 
 violation thereof, or while the same is being so trans- 
 ported, or while the same is being removed from such 
 vessel or vehicle, the person knowingly placing, or aiding 
 or permitting the placing, of such articles upon any such 
 vessel or vehicle, to be so transported, shall be imprisoned 
 not more than ten years. 
 
 Public, No. 350, approved March 4, 1909. 
 
 Boiler Inspection Act (As Amended). 
 
 AN ACT To promote the safety of employees and travelers upon 
 railroads by compelling common carriers engaged in interstate 
 commerce to equip their locomotives with safe and suitable 
 boilers and appurtenances thereto. 
 
 Be it enacted by the Senate and House of Representa- 
 tives of the United States of America in Congress assem- 
 bon^rs™°*'^^ &i!ed, That the provisions of this Act shall apply to any 
 rie°r™™'ffected common Carrier or carriers, their officers, agents, and em- 
 by Act. ployees, engaged in the transportation of passengers or 
 
 property by railroad in the District of Columbia, or in 
 any Territory of the United States, or from one State or 
 Territory of the United States or the District of Colum- 
 bia to any other State or Territory of the United States 
 or the District of Columbia, or from any place in the 
 United States to an adjacent foreign country, or from 
 any place in the United States through a foreign country 
 jg^Meaning o f to any Other place in the United States. The term ' ' rail- 
 " Railroad." road ' ' as uscd in this Act shall include all the roads in 
 use by any common carrier operating a railroad, whether 
 owned or operated under a contract, agreement, or lease, 
 "Employees." ^nd the term " employees " as used in this Act shall be 
 held to mean persons actually engaged in or connected 
 with the movement of any train, 
 Lo^coraouyes^ ^Ec' 2. That f rom and after the first day of July, nine- 
 ^s^ulfiawfui'' *^^^ hundred and eleven, it shall be unlawful for any 
 common carrier, its officers or agents, subject to this Act 
 to use any locomotive engine propelled by steam power 
 in moving interstate or foreign traffi c unl ess the boiler 
 
BOILER INSPECTION ACf. 
 
 117 
 
 of said locomotive and appurtenances thereof are in 
 proper condition and safe to operate in the service to 
 which the same is put, that the same may be employed in 
 the active service of such carrier in moving traffic with- 
 out unnecessary peril to life or limb, and all boilers shall 
 be inspected from time to time in accordance with the 
 provisions of this Act, and be able to withstand such test 
 or tests as may be prescribed in the rules and regulations 
 hereinafter provided for. 
 
 Sec. 3. That there shall be appointed by the President, 
 by and with the advice and consent of the Senate, a chief 
 inspector and two assistant chief inspectors of locomotive 
 boilers, who shall have general superintendence of the 
 inspectors hereinafter provided for, direct them in the 
 duties hereby imposed upon them, and see that the re- 
 quirements of this Act and the rules, regulations, and 
 instructions made or given hereunder are observed by 
 common carriers subject hereto. The said chief inspec- 
 tor and his two assistants shall be selected with reference 
 to their practical knowledge of the construction and re- 
 pairing of boilers, and to their fitness and ability to sys- 
 tematize and carry into effect the provisions hereof relat- 
 ing to the inspection and maintenance of locomotive 
 boilers. The chief inspector shall receive a salary of four 
 thousand dollars per year and the assistant chief inspec- 
 tors shall each receive a salary of three thousand dollars 
 per year; and each of the three shall be paid his travel- 
 ing expenses incurred in the performance of his duties. 
 The office of the chief inspector shall be in Washington, 
 District of Columbia, and the Interstate Commerce Com- 
 mission shall provide such stenographic and clerical help 
 as the business of the offices of the chief inspector and his 
 said assistants may require. 
 
 Sec. 4. That immediately after his appointment and 
 qualification the chief inspector shall divide the terri- 
 tory comprising the several States, the Territories of 
 New Mexico and Arizona, and the District of Columbia 
 into fifty locomotive boiler-inspection districts, so ar- 
 ranged that the service of the inspector appointed for 
 each district shall be most effective, and so that the work 
 required of each inspector shall be substantially the same. 
 Thereupon there shall be appointed by the Interstate 
 Commerce Commission fifty inspectors of locomotive 
 boilers. Said inspectors shall be in the classified service 
 and shall be appointed after competitive examination ac- 
 
 Inspection. 
 
 Chief and two 
 assistant chief 
 inspectors. 
 
 Appoint- 
 ment, etc. 
 
 Selection. 
 
 Salaries, etc 
 
 Office, etc. 
 
 I n s p e ction 
 districts. 
 
 District i n - 
 spectors. 
 
 In classified 
 civil service. 
 
118 BOILER INSPECTION ACT. 
 
 Cording to the law and the rules of the Civil Service Com- 
 mission governing the classified service. The chief in- 
 spector shall assign one inspector so appointed to each of 
 Salaries, etc. tjjg districts hereinbefore named. Each inspector shall 
 receive a salary of one thousand eight hundred dollars 
 per year and his traveling expenses while engaged in the 
 performance of his duty. He shall receive in addition 
 thereto an annual allowance for ofSce rent, ste^tionery, 
 and clerical assistance, to be fixed by the Interstate Com- 
 merce Commission, but not to exceed in the case of any 
 district inspector six hundred dollars per year. In order 
 
 o^ap^icants"^ *° obtain the most competent inspectors possible, it shall 
 be the duty of the chief inspector to prepare a list of 
 questions to be propounded to applicants with respect to 
 construction, repair, operation, testing, and inspection of 
 locomotive boilers, and their practical experience in such 
 work, which list, being approved by the Interstate Com- 
 merce Commission, shall be used by the Civil Service 
 
 tions^'*"^'*^''^" Commission as a part of its examination. No person ii^- 
 terested, either directly or indirectly, in any patented 
 article required to be used on any locomotive under 
 supervision or who is intemperate in his habits shall be 
 eligible to hold the office of either chief inspector or 
 assistant or district inspector. 
 
 carrfers°"°"^^ ^^*^- ^- '^^^^ ^^^^ Carrier subject to this Act shall file 
 its rules and instructions for the inspection of locomotive 
 boilers with the chief inspector within three months after 
 etc" ^ "of "rules *^® approval of this Act, and after hearing and approval 
 filed. by -the Interstate Commerce Commission, such rules and 
 
 instructions, with such modifications as the Commission 
 H.uies'°t*o be requires, shall become obligatory upon such carrier: Pra- 
 caJ-rie/ fails to '"^<^^d> \owever, That if any carrier subject to this Act 
 file any. ghall fail to file its rules and instructions the chief in- 
 
 spector shall prepare rules and instructions not incon- 
 sistent herewith for the inspection of locomotive boilers, 
 to be observed by such carrier; which rules and instruc- 
 tions, being approved by the Interstate Commerce Com- 
 mission, and a copy thereof being served upon the presi- 
 dent, general manager, or general superintendent of such 
 carrier, shaU be obligatory, and a violation thereof pun- 
 changes ishcd as hereinafter provided: Provided also, That such 
 common carrier may from time to time change the rules 
 and regulations herein provided for, but such change 
 shall not take effect and the new rules and regulations be 
 in force until the same shall have been filed with and ap- 
 
BOILER INSPECTION ACT. 119 
 
 proved by the Interstate Commerce Commission. The etc"'**'® '^"'^^' 
 chief inspector shall also make all needful rules, regula- 
 tions, and instructions not inconsistent herewith for the 
 conduct of his office and for the government of the dis- 
 trict inspectors: Provided, however, That all such rules aii*fuies^^' °^ 
 and instructions shall be approved by the Interstate Com- 
 merce Commission before they take effect. 
 
 Sec. 6. That it shall be the duty of each inspector to gpfctfo^"* ' ° ' 
 become familiar, so far as practicable, with the condition 
 of each locomotive boiler ordinarily housed or repaired in 
 his district, and if any locomotive is ordinarily housed or 
 repaired in two or more districts, then the chief inspector 
 or an assistant shall make such division between inspec- 
 tors as will avoid the necessity for duplication of work. 
 Each inspector shall make such personal inspection of ^ p^^cTfo n 'of 
 th« locomotive boilers under his care from time to time boHers. 
 as may be necessary to fully carry out the provisions of 
 this Act, and as may be consistent Tvith his other duties, 
 but he shall not be required to make such inspections at 
 stated times or at regular intervals. His first duty shall „,I",??,t°"°° '"' 
 
 *=3 ./ carriers. 
 
 be to see that the carriers make inspections in accordance 
 with the rules and regulations established or approved hj 
 the Interstate Commerce Commission, and that carriers 
 repair the defects which such inspections disclose before 
 the boiler or boilers or appurtenances pertaining thereto 
 are again put in service. To this end each carrier sub- 
 ject to this Act shall file with the inspector in charge, 
 under the oath of the proper officer or employee, a dupli- p^r^3''tj, ^^l 
 cate of the report of each inspection required by such *^^^^- 
 rules and regulations, and shall also file with such in- 
 spector, under the oath of the proper officer or emploj^e, 
 a report showing the repair of the defects disclosed by the fe^ts^^''^'"^ ^^" 
 inspection. The rules and regulations hereinbefore pro- 
 vided for shall prescribe the time at which such reports 
 shall be made. Whenever any district inspector shall, in fe^hr'e°1)ofiws" 
 the performance of his duty, find any locomotive boiler ^'°- 
 or apparatus pertaining thereto not conforming to the 
 requirements of the law or the rules and regulations estab- 
 lished and approved as hereinbefore stated, he shall 
 notify the carrier in writing that the locomotive is not in 
 serviceable condition, and thereafter such boiler shall not 
 be used until in serviceable condition : Provided, That a FT°^^2i- ^ = t„ 
 carrier, when notified by an inspector in writing that a by'lLrrier^'^'°'^ 
 locomotive boiler is not in serviceable condition because of 
 defects set out and described in said notice, may, within 
 
120 BOILER INSPECTION ACT. 
 
 five days after receiving said notice, appeal to the chief 
 tidnf '^''^'"' ° ^' inspector by telegraph or by letter to have said boiler re- 
 examined, and upon receipt of the appeal from the in- 
 spector's decision the chief inspector shall assign one of 
 the assistant chief inspectors or any district inspector 
 other than the one from whose decision the appeal is 
 taken to reexamine and inspect said boiler within fifteen 
 Effect days from date of notice. If upon such reexamination 
 
 the boiler is found in serviceable condition, the chief in- 
 spector shall immediately notify the carrier in writing, 
 whereupon such boiler may be put into service without 
 further delay ; but if the reexamination of said boiler sus- 
 tains the decision of the district inspector, the chief in- 
 spector shall at once notify the carrier owning or operat- 
 ing such locomotive that the appeal from the decision of 
 the inspector is dismissed, and upon the receipt of such 
 I n*fe*r^'t a t e ^^oticc the Carrier may, within thirty days, appeal to the 
 comSi^ion^^ Interstate Commerce Commission, and upon such appeal, 
 and after hearing, said Commission shall have power to 
 Final action, revisc, modify, or set aside such action of the chief in- 
 spector and declare that said locomotive is in serviceable 
 r e^q m?eme°nt? Condition and authorize the same to be operated: Pro- 
 fng'app^eaJs^"'*" ''^''■^^^ further, That pending either appeal the require- 
 ments of the inspector shall be effective, 
 pott" o"Vhief ^^^- '^' '^^^^ t^6 chief inspector shall make an annual 
 inspector. report to the Interstate Commerce Commission of the 
 
 work done during the year, and shall make such recom- 
 mendations for the betterment of the service as he may 
 desire, 
 from faifm-e of ^^^- ^' '^^^^ ^^ ^^^ case of accident resulting from f ail- 
 boiiers. ^re from any cause of a locomotive boiler or its appurte- 
 
 nances, resulting in serious injury or death to one or more 
 persons, a statement forthwith must be made in writing 
 of the fact of such accident, by the carrier owning or op- 
 investigation. erating Said locomotive, to the chief inspector; where- 
 upon the facts concerning such accident shall be investi- 
 gated by the chief inspector or one of his assistants, or 
 such inspector as the chief inspector may designate for 
 Disabled ^jj^t purposc. And whcre the locomotive is disabled to 
 
 parts to be pre- ^ ^ 
 
 served. the extent that, it can not be run by its own steam, the 
 
 part or parts affected by the said accident shall be pre- 
 served by said carrier intact, so far as possible, vrithout 
 hinderance or interference to trafific until after said in- 
 ^Detaiied re- gpection. The chief inspector or an assistant or the desig- 
 nated inspector making the investigation shall examine 
 
BOILER INSPECTION ACT. 121 
 
 or cause to be examined thoroughly the boiler or part 
 affected, making full and detailed report of the cause of 
 the accident to the chief inspector. 
 
 The Interstate Commerce Commission may at any time t^state^c*o m - 
 call upon the chief inspector for a report of any accident ^ion'^^? °2ause' 
 embraced in this section, and upon the receipt of said re- ^t'=- 
 port, if it deems it to the public interest, make reports of 
 such investigations, stating the cause of accident, together 
 with such recommendations as it deems proper. Such re- 
 ports shall be made public in such manner as the Commis- 
 sion deems proper. Neither said report nor any report of no?admitted'in 
 said investigation nor any part thereof shall be admitted damage suits, 
 as evidence or used for any purpose, in any suit or action 
 for damages growing out of any matter mentioned in 
 said report or investigation. 
 
 Sec. 9. That any common carrier violating this Act or vi^ltions ^by 
 any rule or regulation made under its provisions or any carriers, 
 lawful order of any inspector shall be liable to a penalty 
 of one hundred dollars for each and every such violation, 
 to be recovered in a suit or suits to be brought by the 
 United States attorney in the district court of the United 
 States having jurisdiction in the locality where such vio- 
 lation shall have been committed ; and it shall be the duty trict"'attoriu!ys 
 of such attorneys, subject to the direction of the Attorney *° '"'■"s suits. 
 General, to bring such suits upon duly verified informa- 
 tion being lodged with them, respectively, of such vio- 
 lations having occurred; and it shall be the duty of the frJm "chief* ?n" 
 chief inspector of locomotive boilers to give information spector. 
 to the proper United States attorney of all violations of 
 this act coming to his knowledge. 
 
 Sec. 10. That the total amounts directly appropriated prJ'priations^"" 
 to carry out the provisions of this Act shall not exceed 
 for any one fiscal year the sum of three hundred thousand 
 dollars. 
 
 {Amendment of March 4, 1915.) (Sec. 1.) That section 
 two of the act entitled "An act to promote the safety of 
 employees and travelers upon railroads by compelling 
 common carriers engaged in interstate commerce to equip 
 their locomotives with safe and suitable boilers and ap- 
 purtenances thereto," approved February seventeenth, 
 nineteen hundred and eleven, shall apply to and include ^■?'J*-''"®'°,°°" 
 the entire locomotive and tender and all parts and ap- eluded, 
 purtenances thereof. 
 
 (Sec. 2.) That the chief inspector and the two assistant 
 chief inspectors, together with all the district inspectors. 
 
122 BLOCK SIGNAL RESOLUTION'. 
 
 tended°"°" ^^' appointed under the act of February seventeenth, nine- 
 teen hundred and eleven, shall inspect and shall have the 
 same powers and duties with respect to all the parts and 
 appurtenances of the locomotive and tender that they 
 now have with respect to the boiler of a locomotive and 
 the appurtenances thereof, and the said act of February 
 seventeenth, nineteen hundred and eleven, shall apply to 
 and include the entire locomotive and tender and all their 
 parts with the same force and effect as it now applies to 
 
 of fnspecSn-s °" locomotivc boilcrs and their appurtenances. That upon 
 the passage of this act all inspectors and applicants for 
 the position of inspector shall be examined touching their 
 qualifications and fitness with respect to the additional 
 duties imposed by this act. 
 
 an?l'liwl^not (^^^- ^'^ '^^^* nothing in this act shall be held to alter, 
 
 altered. amend, change, repeal, or modify any other act of Con- 
 
 gress than the said act of February seventeenth, nineteen 
 hundred and eleven, to which reference is herein specifi- 
 cally made, or any order of the Interstate Commerce 
 Commission promulgated under the safety appliance act 
 of March second, eighteen hundred and ninety-three, and 
 supplemental acts. 
 
 Public, No. 383, approved February 17, 1911 ; and Pubr 
 lie, No. 318, approved March 4, 1915. 
 
 Block Signal Sesolutian. 
 
 JOINT RESOLUTION Directing the Interstate Commerce Com- 
 mission to investigate and report on block-signal systems and 
 appliances for the automatic control of railway trains. 
 
 Resolved by fhe Senate and House of Representatives 
 
 of tJie United States of America in Congress assembled, 
 
 Commission That the Interstate Commerce Commission be, and it is 
 
 directed to in- ' 
 
 ^e^on^'on^ne*^ hereby, directed to investigate and report on the use of 
 
 block sisnais° "^ ^^^ necessity for block-signal systems and appliances for 
 
 the automatic control of railway trains in the United 
 
 States. For this purpose the Commission is authorized 
 
 to employ persons who are familiar with the subject, and 
 
 may use such of its own employees as are necessary to 
 
 make a thorough examination into the matter. 
 
 to*^tLke"'testu ^^ transmitting its report to the Congress the Commis- 
 
 mony and make gjon shall recommcnd such legislation as to the Commis- 
 
 recomme n d a- ° 
 
 t'ons. gjon seems advisable. 
 
BLOCK SIGNAL RESOLUTION. 123 
 
 To carry out and give effect to the provisions of this 
 resolution the Commission shall have power to issue sub- 
 poenas, administer oaths, examine witnesses, require the 
 production of books and papers, and receive depositions 
 taken before any proper officer in any State or Territory 
 of the United States. 
 
 Public Resolution, No. 46, approved June 30, 1906. 
 
 Urgent deficiency act (appropriations) of October jg^g"''^ signal 
 twenty-second, nineteen hundred and thirteen, provides 
 that the Interstate Commerce Commission, at its dis- 
 cretion, may investigate and report in regard to the use 
 and necessity for block-signal systems and appliances for 
 the automatic control of railway trains and any appli- 
 ances or systems intended to promote the safety of railway 
 operation, including experimental tests of such systems 
 and appliances as shall be furnished in completed shape, 
 to such Commission for such investigation and test, free 
 of cost to the Government, in accordance with the pro- 
 visions of the joint resolution approved June thirtieth, 
 nineteen hundred and six. 
 
 * * # * * 
 
 No money appropriated by this or any other act shall 
 be used for the compensation of any publicity expert un- 
 less specifically appropriated for that purpose. 
 
INDEX. 
 
 Page. 
 
 iihsorption, noncompetitive short lines by main lines 66 
 
 Access, Commission's agents to carrier's property 39 
 
 Accidents : 
 
 Excepted from hours-of-service act 112 
 
 From defective boilers 120 
 
 Accidents report act , 106, 108 
 
 Damage suits, reports not to be used in 107 
 
 Failure to report ' 106 
 
 Foreign commerce defined 108 
 
 Form of report 107 
 
 Interstate commerce defined 108 
 
 Monthly reports of accidents 106 
 
 Penalty for failure to report 107 
 
 Power of Commission to investigate accidents 107 
 
 Repeal of prior act 107 
 
 Report of investigations 107 
 
 State commissions, cooperation with 107 
 
 Testimony 107 
 
 Account, false, by shipper to obtain refund 23 
 
 Accounts of carriers: 
 Access to — 
 
 Commission shall have 44 
 
 Commission's agents shall have 39 
 
 Destruction of. Commission may permit 44 
 
 Filing of, mandamus to compel 45 
 
 Form of, Commission may prescribe 43 
 
 Uniform system of, Commission may prescribe 42-43 
 
 Act of God excepted, hours-of-service act 112 
 
 Action, definition under bills of lading act 86 
 
 Action for damages: 
 
 Complaint to Commission or suit in court 21 
 
 Enforcement of Commission's award of damages 33 
 
 Government-aided lines 89 
 
 Adjacent foreign country, transportation to and from 7 
 
 Advance in rates. {See Increased rates.) 
 
 Advantage, unreasonable, unlawful 12 
 
 Aifidavits : 
 
 False, by shipper to obtain refund, etc 23 
 
 Medals of honor act 109 
 
 Affirmations, Commissioners may administer 36 
 
 Agents, necessary, frpe transportation 9, 48 
 
 Agents of carrier: 
 
 Acts of, are deemed to be acts of carrier 59 
 
 Carriers deemed to know acts of 112 
 
 Name of, to be posted at stations 19 
 
 Passes to 9, 4? 
 
 Service on carrier by leaving copy with 51 
 
 Washington agents — 
 
 Service of order of Commission on 34 
 
 To be designated 51 
 
 Agents of Commission, special: 
 
 To inspect accounts, Commission may employ 44 
 
 To receive evidence. Commission may employ 45 
 
 Aggregate of intermediate rates, greater than through rate 12 
 
 Agreement; 
 
 Annual report of carrier concerning 43 
 
 Commission may require production of 25 
 
 Conditioned upon purchaser not to deal with competitor 65 
 
 125 
 
126 
 
 INDEX. 
 
 Agreement — Continued. Page. 
 
 Filed with Commission are public records 35 
 
 For pooling of freights and division of earnings unlawful. 13 
 
 No person excused from producing 56 
 
 Of carriers to be filed with Commission 17 
 
 Of Government-aided lines to be filed with Commission 90 
 
 Road operated under, included in term " railroad " 8 
 
 To break bulk unlawful if to prevent continuous carriage 20-21 
 
 Aid to carriers from United States, etc., value of 38 
 
 Air brakes, percentage of cars in train 102 
 
 Allowance : 
 
 Shipper to obtain, by false means a misdemeanor 22 
 
 To Government made by carriers in consideration of land grants, etc ... . 39 
 
 To owners of trafiic for services rendered ' 32 
 
 Amendments to act not to affect pending cases 48, 51, 62 
 
 American Railway Association to designate height of drawbars 100 
 
 Ammunition under explosives act 114 
 
 Analysis of methods of ascertaining costs of property of carriers 38 
 
 Annual reports of carriers: 
 
 Commission may require and prescribe method of making 42 
 
 Date for filing each year 43 
 
 Government-aided railroad or telegraph lines 90 
 
 Statistics in, are public records 35 
 
 Annual reports, chief inspector of locomotive boilers 120 
 
 Annual reports of Commission: 
 
 Commission to Congress 48 
 
 Printed for distribution 28 
 
 Antitrust acts: 
 
 Not repealed by Clayton Act 67 
 
 Order under Clayton Act does not relieve from 73 
 
 Sherman, violators of, not to use Panama Canal 15 
 
 Antitrust laws, inclusion of laws under Clayton Antitrust Act 64 
 
 Appeals : 
 
 Circuit Court of Appeals to United States Supreme Court under Clayton 
 
 Act 72 
 
 Cost, enforcement of order for payment of money 33 
 
 District courts to United States (Supreme Court 54 
 
 District inspector's decision — 
 
 To chief inspector 119 
 
 To Commission 120 
 
 Inspectors' requirements effective pending 120 
 
 Interested parties may, from enforcement of orders under Clayton Act. . 72 
 
 Supreme Court and court of appeals under expediting act 63 
 
 Appearance before Commission, by attorney or in person 36 
 
 Appliances, Commission to designate 103 
 
 Application : 
 Carriers — ■ 
 
 For relief from operation of section 4 13 
 
 Medals of honor 109 
 
 Of shipper's, lateral, or branch line's for switch connection 11 
 
 To determine question of competition with water lines 14 
 
 Appointments by President: 
 
 Boiler-inspection act 117 
 
 Interstate Commerce Commissioners 24, 50 
 
 Appropriations : 
 
 Block-signal resolution 123 
 
 Boiler-inspection act 121 
 
 Medals of honor act 109 
 
 Arrangement : 
 
 Between carriers filed with Commission 17 
 
 Between carriers filed with Commission, public records 35 
 
 Between rail and water lines for continuous carriage 7 
 
 Artificial person, penalty of imprisonment shall not apply to 23 
 
 Ash-pan act .112-113 
 
 Duty of Commission 113 
 
 Enforcement 113 
 
 Equipment necessary , 112-113 
 
INDEX. W 
 
 Ash-pan act — Continued. Page. 
 
 Locomotives excepted 113 
 
 Penalty for violation 113 
 
 Receivers included 113 
 
 Association : 
 
 Complaint to Commission by 27 
 
 Subsidy or donation from, to carriers 38 
 
 Assumption of risk 101 
 
 Attorney General: 
 
 Authority to transfer property of Commerce Court 55 
 
 Certificate of, to expedite suits 62-63 
 
 Commission to report to, of violations of making purchases without bids . 70 
 
 District attorneys to prosecute under direction of 25, 34 
 
 Duty of, under Government-aided lines act 89 
 
 Notice to, of tentative valuation 40 
 
 To direct suits, boiler-inspection act 121 
 
 To direct prosecutions 60, 90 
 
 Attorneys {see also District attorneys) : 
 
 Commission may employ 34 
 
 Parties may appear by, or in person 36 
 
 Passes to attorneys in employ of carrier 9 
 
 Attorney's fees, carrier liable for, as part of costs 21, 33 
 
 Automatic couplers, cars to be equipped with 99 
 
 Award of damages: 
 
 Commission may make 33 
 
 Enforcement of Commission's 33 
 
 Baggage: 
 
 Agents, passes to 9-10 
 
 Free, under mileage tickets 49 
 
 Personal, sample, and excess 9 
 
 Released rates dependent upon value 46 
 
 Bank: 
 
 Director, oiBcer, or employee in more than one, prohibited 67 
 
 Mutual savings, directors and officers in 67-68 
 
 Banker, private, director, etc., in bank organized under United States laws. . . 67 
 
 Banking arrangements, for issuance of stocks, etc 38 
 
 Banks, Federal Reserve Board to enforce Clayton Act where applicable to. . . . 70 
 
 Betterments in carriers' property 40 
 
 Bids: 
 
 Contracts, etc., between corporations to be by competitive 70 
 
 Penalty for preventing bidding or competition among bidders 70 
 
 Bill, false, by shipper 23 
 
 Billing, false, by snipper or carrier. 22 
 
 Bills of lading act 76 
 
 Constitutionality of one provision not to aflfect other 86 
 
 Bills of lading: 
 
 Carrier shall issue 31, 45 
 
 Carriers shall issue and be liable for loss to lawful holder thereof 45 
 
 False, by shipper to obtain refund. 23 
 
 Forging or counterfeiting bills of lading 85 
 
 Issued for transportation of stores used in valuation service 42 
 
 Liability of carrier for goods receipted for 81 
 
 Liability of carrier issuing duplicates 79 
 
 Liability of indorser 84 
 
 Order — 
 
 Attaching by creditor whose debtor is owner 82 
 
 Delivery before surrendering , 82 
 
 Goods covered by, attached by garnishment 82 
 
 Lien of carrier on goods covered by .- 82 
 
 Negotiability of 76, 77, 83 
 
 Negotiable by possessor 83 
 
 Negotiated by delivery 82 
 
 Negotiated by indorsement 83 
 
 Not to be issued in parts or sets 76 
 
 Rights of mortgagee as against purchaser from owner 85 
 
 Stoppage in transit by seller 85 
 
 Subsequent negotiation by person and continuing in possession of . . . 85 
 
128 INDEX. 
 
 Bills of lading — Continued. Page. 
 Order — Continued. 
 
 Title acquired by negotiating 83 
 
 Transfer by indorsement 84 
 
 When more than one issued to be indicated " duplicate " 77 
 
 Regulations, reasonable, affecting 9 
 
 Shipper's weight, load and count 80, 81 
 
 Straight — 
 
 Negotiability of, to be indicated 77 
 
 Transfer and negotiating 83 
 
 Title acquired by transfer of 83 
 
 Unauthorized alteration 79 
 
 Validity of negotiation where negotiation was a breach of duty by person 
 
 making 84 
 
 Various kinds defined 76 
 
 Warranties by person who negotiates or transfers by indorsement or 
 
 delivery » 84 
 
 Warranties of mortgagee or pledgee or other holder of, for security 84 
 
 Block-signal resolution 122 
 
 Appropriation 123 
 
 Boiler-inspection act 116-122 
 
 Accidents reported to chief inspector 120-121 
 
 Annual report of chief inspector 120 
 
 Appeal to chief inspector and Commission 119-120 
 
 Boilers subject to 116 
 
 Carriers affected 116 
 
 Chief inspector 117, 118, 119, 120, 121 
 
 Civil service 118 
 
 Damage suits, reports not to be used in 121 
 
 Defective boilers, notice of 119 
 
 Employees defined 116 
 
 Enforcement of 121 
 
 Examinations for inspectors 118 
 
 Inspection — 
 
 By carriers 118 
 
 Districts, United States divided into 117 
 
 Inspectors, salary, etc 117, 118 
 
 Investigation of accidents 120 
 
 Locomotive boilers must be safe 116-117 
 
 Offices of chief inspector and district inspector 117 
 
 Penalty for violation 121 
 
 Railroad defined 116 
 
 Report of accidents 120-121 
 
 Rules for inspection, Commission to approve 119 
 
 Books and papers: , 
 
 Commerce Court, sent to Department of Justice 55 
 
 Commission may require production of 25 
 
 Courts may compel production 25, 61 
 
 No person excused from producing. .'. 56 
 
 Bond: 
 
 Execution of — 
 
 Injunction proceedings under Clayton Act 74 
 
 Where temporary restraining order granted under Clayton Act 74 
 
 Bonds of carriers, valuation report shall show 38 
 
 Branch line: 
 
 Application of, for switch connection 11 
 
 May be acquired by main lines 66 
 
 Breaking bulk, unlawful unless made in good faith 21 
 
 Bridges included in term " railroad " 8, 110 
 
 Briefs to President, medals of honor act 110 
 
 Bulk, break of : 21 
 
 Burden of proof on carrier to justify advances 30 
 
 Business, Commissioners not to have other 24-25 
 
 Cable companies: 
 
 Charges shall be just and reasonable 8 
 
 Exchange of passes or franks with common carrier 10 
 
 Exchange of service with common carrier 9 
 
INDEX. 1^9 
 
 Cable companies— Continued. Page. 
 
 Messages, classification 8 
 
 Subject to act 7 
 
 Calamitous visitation, carrying passengers free in cases of 10 
 
 Canal : 
 
 Lake Erie and Obio River Ship Canal 91 
 
 Panama Canal 14, 15, 20 
 
 Capital stock: 
 
 Director, etc., in more than one bank where entire capital stock is owned 
 
 by the other 68 
 
 Increases or decreases, valuation report shall show 38 
 
 Caretakers of live stock, etc., passes to 9-10 
 
 Carriers : 
 
 " Common carrier " defined 8 
 
 Deemed to have knowledge of acts of agents, etc 111-112 
 
 Held to mean common carrier 17 
 
 Notice to, of tentative valuation 40 
 
 Shall file rules and instructions for inspecting boilers 118 
 
 Subject to act 7 
 
 Subject to— 
 
 Accidents-report act 100 
 
 Ash-pan act 112-113 
 
 Boiler-inspection act 116 
 
 Explosives act 114 
 
 Hours-of -service act 110 
 
 Safety-appliance act 99, 101, 103 
 
 Cars: 
 
 Carriage in different 21 
 
 Defective, may be hauled to nearest repair point 104 
 
 Equipped with train brakes, automatic couplers, etc 99 
 
 Exchange, interchange, and return 8 
 
 Furnished for shipper with spur track 11 
 
 Included in term "transportation" 8 
 
 Mandamus to compel furnishing 49 
 
 Not equipped with safety appliances, not to be handled 99, 100 
 
 Subject to safety-appliance act 105 
 
 Use of, for mail supplies 94 
 
 Certificate, false, by shipper to obtain refund, etc , . . . 23 
 
 Certiorari, review by Supreme Court of order under Clayton Antitrust Act. 72 
 
 Chains, hauling by, not permitted unless cars contain live stock or perishable 
 
 freight 105 
 
 Chairman of Commission shall approve vouchers 37 
 
 Changes: 
 
 In conditions and value of carriers' property 40 
 
 In rates 16 
 
 Charges : 
 
 Commission may prescribe maximum 29 
 
 Filed with Commission, public records 35 
 
 For services rendered by owner of property transported 32 
 
 Less for longer than for shorter haul 12-13 
 
 Must be just and reasonable 8 
 
 Rules and regulations affecting 15-16 
 
 Terminal and all other, to be printed and posted 16 
 
 Unless filed, carrier not to transport 17 
 
 Charitable : 
 
 Institutions, passes to inmates of 9, 48 
 
 Work, passes to persons engaged in 9, 48 
 
 Chief inspector: 
 
 Annual report to Commission 120 
 
 Appointed by President 117 
 
 Carriers may appeal to 119-120 
 
 Notify district attorneys of violations of act 121 
 
 Report of accidents 120-121 
 
 Children, minor, of deceased employees of carrier, passes to 10 
 
 64823°— 17 9 
 
130 INDEX. 
 
 Circuit court of appeals: "Page. 
 
 Appeals to, under expediting act 63 
 
 Commission may apply to for enforcement of order under Clayton Anti- 
 trust Act 71 
 
 Exclusive jurisdiction under Clayton Antitrust Act 72 
 
 Judgments and decrees under hours-of -service act 112 
 
 Judgments and decrees, under safety-appliance acts 106 
 
 Civil service: 
 
 District inspectors chosen by 118 
 
 Shall use questions approved by Commission 118 
 
 Civil suit to recover forfeiture 34 
 
 Claims : 
 
 False, by shipper to obtain refund, etc 23 
 
 Period for notice and filing of 47 
 
 To be filed within two years 33. 
 
 Classification : 
 
 Change of, under parcel post 92 
 
 Commission may prescribe 29 
 
 Copies of, filed with Commission, public records 35 
 
 Elements of valuation. Commission may determine 39 
 
 False — 
 
 By carrier, misdemeanor 22 
 
 By shipper, fraud, declared a misdemeanor 23 
 
 Must be just and reasonable 9, 28, 30 
 
 Of property of carriers for valuation 37 
 
 Of telegraph and telephone messages 8 
 
 Printing and posting 15 
 
 Classified service, district inspectors under 117-118 
 
 Clayton Antitrust Act 64 
 
 Clerical assistance, boiler-inspection act 117, 118 
 
 Collisions must be reported and investigated 106, 107 
 
 Combination : 
 
 For pooling of freights and division of earnings 13 
 
 To break bulk, unlawful, unless in good faith 20-21 
 
 Commerce : 
 
 Federal Trade Commission to enforce compliance with Clayton Antitrust 
 
 Act where applicable to other than common carriers and banks 70 
 
 Meaning of, under Clayton Antitrust Act 64 
 
 Person engaged in, not to discriminate in prices 65 
 
 Commerce Court: 
 
 Abolished 52 
 
 Books, dockets, etc., sent to Department of Justice 55 
 
 Cases pending in, transferred to district courts, exceptions 55 
 
 Cases remanded by Supreme Court to district courts 55 
 
 Jurisdiction of, transferred to district courts 52 
 
 No successors to judges to be appointed 53 
 
 Tenure of office of judges not afi'ected 52 
 
 Commercial messages, telegraph, etc 8-9 
 
 Commissioners : 
 
 Method of appointment and term 24, 50 
 
 Not more than four from same political party 50 
 
 One or more may sign subpoena 36 
 
 Qualifications of 24, 36, 50 
 
 Salary of 36, 50 
 
 Committee, medals of honor act 109 
 
 Commodities clause 11 
 
 Common carriers: 
 
 Commission to enforce compliance with Clayton Antitrust Act where 
 
 applicable to 70 
 
 Complaints by 27 
 
 Defined 17, 110 
 
 Duty to observe and comply with orders 34 
 
 Embezzlement by president, etc., of felony 69 
 
 Includes receivers, ash-pan act 113 
 
 Subject to act 7 
 
 To include express and sleeping-car companies 8 
 
 Commutation tickets, issuance of, not prohibited 48 
 
 Companies, complaints to Commission by 27 
 
INDEX. 131 
 
 Compensation : Page. 
 
 Employees transported in valuation service 42 
 
 For short haul as great aa or greater than for long haul 12-13 
 
 For switch connection, Commission to determine 11 
 
 Greater or less than published tariffs 49 
 
 Keasonable, rules for 8 
 
 Competent evidence, report and decision of Commission 28 
 
 Competing line: 
 
 Bailroad not to have interest in competing water line 13-14 
 
 Shipper may designate routing 31 
 
 Competition : 
 
 Discrimination in prices so as to lessen 65 
 
 Elimination of, by interlocking directorates 68 
 
 Penalty for preventing, among bidders 70 
 
 Kestraint in, by acquisition of stock of competitor 65-66 
 
 Competition of water line: 
 
 Commission to determine question of 14 
 
 Reduced rate to meet 13 
 
 Competitor, lease, sale, or contract upon condition not to deal with, unlawful 65 
 
 Complaints to Commission : 
 
 Answer of carrier in writing 27 
 
 Based on violation of the act 27 
 
 By whom made 27 
 
 Concurrent remedy with suit in court '. 21 
 
 Government-aided lines, discrimination 88 
 
 How made and served 27 
 
 Investigation of 27 
 
 No dismissal, because no direct damage to complainant 28 
 
 Procedure for investigating under Clayton Antitrust Act 70-71 
 
 Proposed rates 29 
 
 Satisfaction of, by carrier 27 
 
 Compliance, time for: 
 
 Hours-of-service act Ill 
 
 Safety-appliance act 101, 104, 105 
 
 Compulsory-testimony act 56 
 
 Concessions : 
 
 By carriers in consideration for grants 39 
 
 Unlawful to give or receive 58 
 
 Conclusions, report shall state 28 
 
 Concurrence in joint tariffs 17 
 
 Condemnation cost of property of carriers 38 
 
 Conflicting laws repealed 51, 56, 62, 91 
 
 Congress : 
 
 Annual report of Commission to ; 48 
 
 Bight to amend or repeal Government-aided railroad acts 91 
 
 Valuation report of Commission to 39 
 
 Connecting lines: 
 
 Discrimination between, forbidden 12 
 
 Initial carrier liable for loss or damage 45 
 
 Interchange of traflic between 12 
 
 Recourse against, by initial line 47 
 
 Refusal of cars from 99 
 
 Use of tracks or terminal facilities of another carrier 12 
 
 Connecting telegraph lines with Government-aided lines 87 
 
 Connecting tracks, terms, and conditions of construction 19 
 
 Connivance by shipper with carrier 23 
 
 Consideration, as a rebate from published tariffs forbidden 59 
 
 Consignee: 
 
 Definition of, under bills-of-lading act 86 
 
 False billing by, etc., declared a misdemeanor 23 
 
 Information concerning shipment of, not to be disclosed 31-32 
 
 Unjust discrimination against, induced by other shipper 24 
 
 Consignor : 
 
 Definition of, under bills-of-lading act 86 
 
 False billing, etc., declared a misdemeanor 23 
 
 Unjust discrimination against, induced by other shipper , 84 
 
132 INDEX. 
 
 Construction : Page. 
 
 Branch or short lines by main lines, ,not prohibited 66 
 
 If part of act held invalid, other parts shall not be affected 75, 86 
 
 Contempt, refusal to appear and testify 25-26 
 
 Contents of package, false representation, a misdemeanor 23 
 
 Continuous carriage: 
 
 By rail and water lines 7 
 
 Device to prevent, unlawful 20-21 
 
 Continuous service, hours-of-service act Ill 
 
 Contracts : 
 
 And agreements to be filed with Commission 17 
 
 Annual report of carrier concerning 43 
 
 Carrier prohibited from purchasing from another corporation having 
 
 same officers 69 
 
 Commission may require production of 25 
 
 Conditioned upon purchaser not to deal with competitor 65 
 
 Exchange of services , 9 
 
 Exempting carrier from liability 45 
 
 Filed with Commission are public records 35 
 
 For pooling of freight and division of earnings 13 
 
 For use of cars, facilities, etc 8 
 
 No person excused from producing 56 
 
 Of Government-aided lines to be filed with the Commission 90 
 
 Road operated under, included in term "railroad" 8 
 
 To be furnished to Commission by carriers 39 
 
 To break bulk, unlawful if to defeat continuous carriage 20-21 
 
 Ultra vires, of Government-aided lines 89 
 
 Control of competing water carrier, railroad not to have 13-14 
 
 Cooperation by carriers in valuation work required 39 
 
 Copies of maps, etc., to be furnished to Commission by carriers 39 
 
 Copies of records, certified, received as originals 35 
 
 Corporate organizations, history of, in valuation report 38 
 
 Corporations : 
 
 Complaints to Commission by 27 
 
 Liable under Elkins Act 58 
 
 Penalty of imprisonment shall not apply to 23 
 
 Same person not be director in two or more 68 
 
 Subsidiary formation of, not prohibited 66 
 
 Subsidy or donation from, to carriers 38-39 
 
 Correction of valuation 40 
 
 Costs : 
 
 And expenses of prosecution 25, 34 
 
 Attorney's fees, collected as part of 21, 33 
 
 Condemnation of property of carriers 38 
 
 Depositions 27 
 
 False representation by shippers 23 
 
 Of carriers' property, original and reproduction 38 
 
 Petitioner not liable for, unless on his appeal 33 
 
 Counsel fee, liability of carrier 21, 33 
 
 Counterclaim, includes action under bills-of -lading act 86 
 
 Counting packages, shipper's 80, 81 
 
 County, donation from, to carriers 38-39 
 
 Couplers : 
 
 Act applies where brought together 101 
 
 Cars must be equipped with automatic 99 
 
 Courts (see also District courts) : 
 
 Commerce 52, 55 
 
 Commission may apply to, for enforcement of order under Clayton Anti- 
 trust Act 71 
 
 District 53 
 
 Evidence differing from Commission's valuation sent to Commission. ... 41 
 
 Final valuation prima facie evidence 40, 41 
 
 Order for payment of money to be enforced in 3,3 
 
 Remedy in Commission or 21 
 
 Scope of jurisdiction in prosecution 59 
 
 Supreme 54, 55 
 
 To compel witnesses to attend and testify 25 
 
INDEX. 133 
 
 Page. 
 
 Criminal provisions 10, 18, 22, 23, 24, 44, 56, 58, 115 
 
 Criminate, that testimony may, no excuse : 21, 26, 54, 61 
 
 Cummins amendment 45 
 
 Custody, records filed with Commission in secretary's 35 
 
 Customs duties, when domestic freight subject to 16 
 
 Customs inspectors, passes to 9-10 
 
 Damages : 
 
 Action for, against Government-aided lines 89 
 
 Award of. Commission may make 33 
 
 Bringing a suit for 21, 33, 59 
 
 Carrier issuing receipt or bill of lading shall be liable for 45 
 
 Caused by misstating rate 18 
 
 Caused by shippers inducing carriers to discriminate 24 
 
 Caused by violation of the act 21 
 
 Complaints for, to be filed within two years 33 
 
 Complaints not to be dismissed because no direct damage 28 
 
 Due to negligence 47 
 
 Election of remedies 21 
 
 Enforcement of award in court 33 
 
 Initial carrier liable on through shipments 47 
 
 Issuance of temporary restraining order, without notice, against, under 
 
 Clayton antitrust act 74 
 
 Joint liability for 24 
 
 Report shall include finding of fact 28 
 
 Suit against person receiving rebate 60 
 
 Suit on award, what petition shall state 33 
 
 Damage suits: 
 
 Accident reports not evidence in 107 
 
 Boiler-inspection reports not evidence in 121 
 
 Data, valuation of Commission, public inspection of 40 
 
 Debts, funding and floating, annual report of carrier shall show 42 
 
 Decision, equal division of court under expediting act 63 
 
 Decision of Commission, report in writing 28 
 
 Decisions of Commission to be published and be competent as evidence 28 
 
 Dedication to public use of property of carriers, time of 38 
 
 Default of carrier to appoint Washington agent 51 
 
 Defective: 
 
 Boilers shall not be used 119 
 
 Cars may be hauled to nearest repair point 104 
 
 Delay, damages due to, in loading and unloading 47 
 
 Delivering passengers and property from connecting line 12 
 
 Delivery : 
 
 Carriers defense for failure to make, where title to goods claimed by 
 
 third person 80 
 
 Conditions precedent to, under bills of lading act 77, 7S 
 
 For transportation 9 
 
 Included in term "transportation" 8 
 
 Liability of carriers for unlawful 78 
 
 Liability of carrier, under order bill of lading 78 
 
 Order bill may be negotiated by 82 
 
 Partial under order of bill of lading 79 
 
 Refusal where some one other than consignee or person in possession of 
 
 bill of lading claims title 80 
 
 To consignee named in bills of lading or holder of order bill 77 
 
 Under order of court 79 
 
 Where order bill of lading is lost, destroyed, or stolen 79 
 
 Wholly within one State ' 7-8 
 
 Department of Justice, Commerce Court property transferred to 55 
 
 Deposition : 
 
 False, by shipper to obtain refund, etc 23 
 
 Pees of officers, etc. . ; 27 
 
 Foreign country 26 
 
 Testimony taken by 26 
 
 Depots, yards, and grounds included with term "railroad" 8 
 
 Depreciation, property of carriers 38 
 
 ■nornilmpTits must be reported 106 
 
134 INDEX. 
 
 Page. 
 
 Designs for medals 110 
 
 Destination, defined 53 
 
 Destitute persons, passes to 48 
 
 Destroying records of carrier, misdemeanor 44 
 
 Destruction of records, Commission may permit 45 
 
 Device: 
 
 By carrier to obtain transportation at less than regular rates 23 
 
 By carrier to permit transportation at less than regular rates 22 
 
 To collect greater or less compensation, unlawful 12 
 
 To depart from the published tariffs, misdemeanor 59 
 
 To prevent continuous carriage, unlawful 20-21 
 
 To rebate, forbidden 17 
 
 Different compensation than tariff rate 17,. 5S 
 
 Director : 
 
 Bank, eligibility of 67 
 
 Corporation, eligibility of 68 
 
 In more than one bank, prohibited 67 
 
 In more than one bank, where entire capital stock is owned by the other. 68 
 
 Private, in bank organized under United States laws 67 
 
 Private bank 67 
 
 Same person not to be, in two or more corporations 68 
 
 Disabled employees of carriers, passes to 10 
 
 Disadvantage, unreasonable or unlawful, forbidden 12 
 
 Disclosing information : 
 
 Concerning shipments 31-32 
 
 Penalty for examiner 45 
 
 Discontinuance of discrimination by order of court 61 
 
 Discriminate, shipper inducing carrier to, misdemeanor 24 
 
 Discrimination : 
 
 Between connecting lines forbidden 12 
 
 Forbidden by telegraph-line connection with Government-aided line 88 
 
 In price between different purchasers of commodities 65 
 
 Lake Erie & Ohio River Ship Canal not to make 91 
 
 Penalty for inducing 24 
 
 Unjust by special rate, rebate, drawback, or device 12 
 
 Unlawful, fine or imprisonment for 22 
 
 Unlawful to give or receive 58 
 
 District attorneys: 
 Duty under — 
 
 Ash-pan act 113 
 
 Boiler-inspection act 121 
 
 Blkins Act 61 
 
 Hours-of-service act 111-112 
 
 Safety-appliance act 100, 102, 105 
 
 To prosecute for recovery of forfeitures 34 
 
 To prosecute under direction of Attorney General 25, 34 
 
 District courts: 
 
 Appeal from 54 
 
 Commerce Court jurisdiction and cases transferred to 52, 55 
 
 Jurisdiction act 52 
 
 Jurisdiction — 
 
 Ash-pan act 113 
 
 Boiler-inspection act 121 
 
 Clayton Antitrust Act 69 
 
 Hours-of-service act Ill 
 
 Safety-appliance acts 100 
 
 To restrain violation of Clayton Antitrust Act 73 
 
 Mandamus to compel compliance with act 41, 45, 50 
 
 Procedure involving Commission's orders 53 
 
 To compel by mandamus compliance with valuation provisions 41 
 
 District of Columbia: 
 Included in — 
 
 Act to regulate commerce 7 
 
 Ash-pan act 113 
 
 Boiler-inspection act 117 
 
 Safety-appliance acts 101 
 
 Yj^luation of carrier's property in. ...,.,.., .39 
 
tNDfii. 135 
 
 Page. 
 
 Bistrict inspectors, boiler-inspection act, duties, etc 117, 118 
 
 District, United States, divided into, boiler-inspection act 117 
 
 Divided court under expediting act 63 
 
 Dividends paid, annual report of carriers shall show 42 
 
 Division of earnings and pooling of freights 13 
 
 Division of rates. Commission may prescribe 29-30 
 
 Dockets, Commerce Court, transferred to Department of Justice 55 
 
 Docks, physical connections with rail carrier 19 
 
 Documentary evidence: ^ 
 
 Commission may require production of 25, 39 
 
 Courts may compel production of 25 
 
 No person excused from producing 56 
 
 Penalty for refusing to produce 56-57 
 
 Domestic freight, when subject to customs duties 16 
 
 Donation to carriers from the United States, etc., value of 38-39 
 
 Drawback : 
 
 Lake Erie & Ohio River Ship Canal, not to grant 91 
 
 Unlawful 12 
 
 Drawbars : 
 
 Commission may modify height of 104 
 
 Standard height of 100, 101 
 
 Driving-wheel brakes, engines must be equipped with 99 
 
 Duty and power of Commission 25 
 
 Duty, period of, hours-of-service act Ill 
 
 I>ynamite under explosives act 114 
 
 Earnings of carriers: 
 
 Annual reports of carriers shall show 43 
 
 Division of, and pooling of freights 13 
 
 Monthly reports of carriers 43 
 
 Valuation report to show 38 
 
 Effective date of act 51 
 
 Effective date: 
 
 Interlocking directorates 69 
 
 Section 10 of Clayton Antitrust Act deferred 75 
 
 Election of remedies for damages caused by violations 21 
 
 Electric locomotives excepted from ash-pan act 113 
 
 Electric passenger railways, street, through route and joint rate with 30 
 
 Eleemosynary : 
 
 Institutions, passes to inmates of 9 
 
 Work, passes to persons engaged in 9 
 
 Elements of valuation 38 
 
 Elevation, included in term "transportation" 8 
 
 Eligibility of director, officer, or employee. 67 
 
 Elkins Act 58 
 
 Embargo, shipments consigned to United States shall be delivered without 
 
 regard to 18 
 
 Embezzlement, president, etc., of common carrier, felony 69 
 
 Emergency cases, hours-of-service act Ill 
 
 Employee: 
 
 Bank, eligibility of 67 
 
 In more than one bank, prohibited 67 
 
 In more than one bank where entire capital stock is owned by the other. 68 
 
 Private bank, and bank organized under United States laws 67-68 
 
 Employees of carriers: 
 
 Carriers' annual report shall show salaries, etc 42 
 
 Defined, boiler-inspection act 116 
 
 Defined, hours-of-service act 110 
 
 Duty to observe and comply with Commission's orders 34 
 
 Killed in service, pass for remains 10 
 
 Passes to 9, 10, 48, 49 
 
 Period of duty, hours-of-service act Ill 
 
 Subject to penalties for violating law 22, 23, 24 
 
 What term "employee" includes 10 
 
 Employees of Commission: 
 
 Commission may hire and fix compensation of 36, 37, 44, 45 
 
 Commission may hire to investigate block signals 122 
 
 Commission's annual report to show names, etc 48 
 
136 INDEX. 
 
 Page. 
 
 Employment, Commissioners shall have no other > 25 
 
 Employment of inspectors: 
 
 Boiler-inspection act 117, 118 
 
 Safety-appliance acts .106 
 
 Enforcement : 
 
 Ash-pan act t ...-..-. . 113 
 
 Boiler-inspection att , 121 
 
 Hours-of-service act 112 
 
 Safety-appliance acts 105 
 
 Enforcement of act 25 
 
 Entry, false, by shipper to obtain refund, etc 23 
 
 Epidemic, carrying passengers free in case of 10 
 
 Equal facilities: 
 
 For interchange of traffic 12 
 
 Telegraph line connecting with Government-aided line 88 
 
 Equipment : 
 
 Cost and value, annual report of carrier shall show 42 
 
 Safety-appliance acts 99 
 
 Equity, suit in, includes action under bills of lading act 86 
 
 Equity suits under act expedited 62 
 
 Evidence : 
 
 Accident reports not to be used as 107 
 
 Boiler-inspection reports not to be used as 121 
 
 Court may order Confn»ission or board to hear additional, under Clayton 
 
 Antitrust Act 72 
 
 Existing law for production of 50 
 
 Final valuation, prima facie evidence 41 
 
 Findings of fact by Commission, prima facie 33 
 
 Findings of fact under Clayton Antitrust Act, conclusive 72 
 
 Immunity of witnesses 21, 26, 50, 56, 5 7, 61 
 
 In court as to value different from valuation of Commission . . . . ' 41 
 
 Reports and decisions, competent as 28 
 
 Special agents or examiners may receive 37, 45 
 
 Examinations, chief inspector to prepare questions 118 
 
 Examiners, special: 
 
 Commission may employ 37, 44 
 
 Penalty for divulging information 45 
 
 Testimony taken before 37, 45 
 
 Exceptions : 
 
 Ash-pan act 113 
 
 Explosives act 114 
 
 Hours-of-service act Ill 
 
 Permitting use of chains, safety-appliance acts 105 
 
 Safety-appliance acts 100, 102 
 
 Excess baggage 9 
 
 Exchange of cars 8-9 
 
 Exchange of service between common carrier and telegraph companies, etc. . . 9 
 
 Excursion tickets, not prohibited 48 
 
 Ex-employees, entering service of carrier, passes to 10 
 
 Exempting carrier from liability 45 
 
 Expediting act 62 
 
 Expediting case, hearing on, temporary restraining order under Clayton 
 
 Antitrust Act 74 
 
 Expediting cases involving increased rates 30 
 
 Expediting cases under Clayton Antitrust Act 72-73 
 
 Expenditures of carriers, valuation reports shall show 38 
 
 Expenses : 
 
 Monthly report of 43 
 
 Of Commission and employees 37 
 
 Of prosecution 34 
 
 Operating and other, annual report of carrier shall show 43 
 
 Experts for valuation work. Commission may employ 37 
 
 Explosives : 
 
 Commission to regulate packing, etc 114-115 
 
 Not to be carried on passenger vehicles 114 
 
 Export traffic, subject to act 7-8 
 
INDEX. 137 
 
 Page. 
 
 Exposition, free or reduced rates for 48 
 
 Express cars, employees on, passes to 9-10 
 
 Express companies, common carriers , 8 
 
 Extension of order suspending increased rates 30 
 
 Extensions, valuation of carriers 40 
 
 facilities : 
 
 Equal, Government-aided telegraph lines 88 
 
 For interchange of traffic 12 
 
 For transportation 9 
 
 None furnished unless specified in tariifs 17 
 
 Of shipment included in term "transportation" 8 
 
 To be specified in schedules 15-16 
 
 Fairs, free or reduced rates for 48 
 
 False : 
 
 Billing, etc., by carrier or shipper 22-23 
 
 Entry in accounts 44 
 
 Families of carrier's employees: 
 
 Passes to 9, 10, 48 
 
 What included in term "families" 10 
 
 Fares : 
 
 Annual report of carrier concerning 43 
 
 Maximum, Commission may prescribe 29 
 
 Must be just and reasonable 8 
 
 Posting and filing 15, 16 
 
 Public records, when filed 35 
 
 Kules and regulations affecting. . 15-16 
 
 Unless filed, carriers not to transport 17 
 
 Federal reserve banks, directors of, being directors in other banks 68 
 
 Federal Reserve Board, to enforce compliance with Clayton Antitrust Act 
 
 where applicable to banks 70 
 
 Federal Trade Commission to enforce compliance with Clayton Antitrust Act 
 
 where applicable to commerce other than commerce by carriers and banks. 70 
 
 Feeders, main lines may acquire 66 
 
 Fees: 
 
 Attorneys, part of costs 21, 33 
 
 Witnesses 37 
 
 Witnesses making depositions 27 
 
 Felony, embezzlement by president, etc., of common carrier 69 
 
 Ferries included in term "railroad" >. 8 
 
 Filing tariffs with Commission 15, 48 
 
 Final valuation of carriers' property 40, 41 
 
 Financial arrangements for issuance of stocks, etc 38 
 
 Financial operations, annual reports of carriers shall show 42 
 
 Financial reports, accidents not reported in 106 
 
 Finding of fact: " 
 
 Conclusive under Clayton Antitrust Act 72 
 
 In report, in case damages awarded 28 
 
 Prima facie in suits involving order for payment of money 33 
 
 Firms, complaints to Commission by 27 
 
 Floating debt, annual report of carrier 42 
 
 Foreign commerce defined 108 
 
 Foreign country: 
 
 Deposition of witness in 26 
 
 Printing of rates through 16 
 
 Transportation to 7 
 
 Forfeiture: 
 
 Failure to comply with valuation section 41 
 
 Failure to file annual reports 43 
 
 Failure to keep records and accounts 44 
 
 No person testifying subject to 56-57 
 
 Payable' into Treasury and recoverable in civil suit 34 
 
 Penalty for giving rebate 58 
 
 Form: 
 
 Accounts, etc., commission may prescribe 44 
 
 Addressing agent, when name not posted 19 
 
 Of schedules 17 
 
 Of valuation results 39 
 
138 INDEX. 
 
 Page. 
 
 Forwarding passengers and property from connecting line 12 
 
 Franchise, cost and value, annual report of carrier shall show 42 
 
 Franks, privilege not prohibited 10 
 
 Free: 
 
 Baggage under mileage tickets 49 
 
 Transportation prohibited ; excepted classes 9, 10, 48 
 
 Freight depot included in term "railroad" 8 
 
 Freights, annual report of carrier '43 
 
 Fruit, necessary caretakers, passes to 9-10 
 
 Fulminate in bulk under explosives act 115 
 
 Funded debt, annual report of carrier 42 
 
 Funds, embezzlement of, by president, etc., of common carrier 69 
 
 Furloughed employees of carriers, passes to 10 
 
 JFurnishing cars 8, 11 
 
 Fuses under explosives act 114 
 
 Garnishment, goods covered by order bill of lading 82 
 
 Gas transportation, not subject to act 7 
 
 Gift to carriers from United States, etc., value of 38, 39 
 
 Goods, definition of, under bills of lading act 86 
 
 Government : 
 
 Free or reduced rates 48 
 
 Messages by telegraph, etc 8-9 
 
 Government-aided railroad and telegraph act 87 
 
 Governor of State, notice to, of tentative valuation 40 
 
 Grab irons must be provided: 
 
 On all cars 99-100 
 
 On top of ladders 103 
 
 Grants from United States, valuation report to show 38 
 
 Greater compensation: 
 
 For shorter than for longer haul 12 
 
 Than tariff rate 17 
 
 Gross earnings, valuation report shall show 38 
 
 Grounds and yards included in term "railroad" 8 
 
 Gunpowder under explosive act ; 114 
 
 Hand brakes, cars must be equipped with 103 
 
 Handholes : 
 
 Cars must be equipped with 103 
 
 Must be provided on ears, or unlawful to use 99-100 
 
 Handling explosives in transit, Commission to regulate 114-115 
 
 Handling of property: 
 
 Included in term "transportation" 8 
 
 Regulations affecting 9 
 
 Wholly within one State 7-8 
 
 Hearing: 
 
 Before three judges to expedite suits in equity 63 
 
 Full hearing provided for 20, 28 
 
 On petition to restrain violations of Clayton Antitrust Act 74 
 
 On protest of valuation of carriers 40 
 
 Preference as to reasonableness of increased rates 30 
 
 Protest of valuation 40 
 
 Report of findings under Clayton Antitrust Act to be in writing 71 
 
 Temporary restraining order, without notice, under Clayton Antitrust 
 
 Act 74 
 
 History of carriers, valuation report shall show 38 
 
 Holder, definition of, under bills-of -lading act < 86 
 
 Homeless person, pass to 9, 48 
 
 Homes for Soldiers and Sailors, passes to inmates of 9, 48 
 
 Hospital, inmates of, passes to 9 
 
 Hours-of-service act 110-112 
 
 Common carriers subject 110 
 
 Compliance with act Ill 
 
 Continuous service Ill 
 
 Employees defined 110 
 
 Enforcement 112 
 
 Exceptions to act Ill 
 
 Judgments and decrees of circuit courts of appeals 112 
 
INMX. 139 
 
 Hours-of-aervice act — Continued. Page. 
 
 Off duty Ill 
 
 Penalty for violation Ill 
 
 Penalty not retroactive 112 
 
 Prosecutions 111-112 
 
 " Railroad " defined 110 
 
 Service hours Ill 
 
 Telegraph and telephone operators Ill 
 
 Icing: 
 
 Charges to be printed 15-16 
 
 Included in term " transportation " 8 
 
 Immigration inspectors, passes to 9-10 
 
 Immunity from prosecution, witnesses entitled to, in certain cases 21 
 
 Import traffic, subject to act 7-8 
 
 Improvements : 
 
 In carriers' property 42 
 
 Valuation of carriers 40 
 
 Increased rates: 
 
 Burden of proof on carrier, as to reasonableness of 30 
 
 By railroads, elimination of water competition 13 
 
 Commission may suspend 29-30 
 
 Incrimination, no person excused from testifying by fear of 21, 26, 56 
 
 Indigent persons, passes to 9, 48 
 
 Indorsement, order bills of lading negotiated by 83 
 
 Infirm employees of carriers, passes to 10 
 
 Information : 
 
 Commission may require of carriers on valuation 40 
 
 Concerning business methods of carrier 25 
 
 Concerning shipment, disclosure of 31, 32 
 
 In relation to rates, etc., annual reports of carriers shall contain 43 
 
 Special examiner, who divulges, penalty 45 
 
 Value of property, may be required 40 
 
 Initial carrier: 
 
 Bill of lading to be issued by 31, 45 
 
 Liable for loss or damage on through shipments 47 
 
 May have recourse upon carrier responsible for loss or damage 47 
 
 Injunction : 
 
 Attaching bill of lading by creditor whose debtor is owner of order bill . . 82 
 
 By district court, involving Commission's order 53 
 
 Commission's orders, appeal 53, 54 
 
 Preliminary, not to issue without notice under Clayton Antitrust Act. . 74 
 
 Keasons for issuance shall be specific under Clayton Antitrust Act 75 
 
 Relief by, against loss and damage under Clayton Antitrust Act 74 
 
 Temporary, violations of Clayton Antitrust Act 74 
 
 To restrain rebates 60 
 
 Injury: 
 
 Accidents to persons, etc., to be reported 106 
 
 Carrier issuing receipt or bill of lading shall be liable for 45 
 
 False statement of, by shipper 23 
 
 Initial carrier liable for, on through shipments 47 
 
 Persons hurt in wreck, pass to 9-10 
 
 Inmates of hospitals, et&, passes to , 9 
 
 Inquiry: 
 
 Commission may institute, on its own motion 20, 27, 88 
 
 May be prosecuted by one or more Commissioners 37 
 
 Inspection : 
 
 By carriers 119 
 
 Must be made, boiler-inspection act 117 
 
 Inspectors : 
 
 Enforce safety-appliance acts 106 
 
 Of locomotive and parts 121 
 
 Of locomotives, examination of 122 
 
 On medals of honor committee 109 
 
 One for each district, boiler-inspection act 118 
 
 Post office, customs, and immigration, passes to 10 
 
 Shall not be interested in patented appliances 118 
 
 To investigate under medals of honor act 110 
 
140 INDEX. 
 
 Instrumentalities : Page. 
 
 Allowance to person furnishing 32 
 
 Included in term " transportation " 8 
 
 Insular possessions: 
 
 Clayton Antitrust Act, applicable to 64 
 
 Commerce between, under Clayton Antitrust Act 64 
 
 Interchange: 
 
 Of cars 8 
 
 Passes authorized 10, 46, 47 
 
 Telegraph business with Government-aided line 88 
 
 Traffic, between rail and water lines 20 
 
 Traffic, facilities for 12 
 
 Interchangeable tickets 49 
 
 Interest : 
 
 Complainant's lack of, no ground for dismissal 28 
 
 On debts, annual report of carrier 42 
 
 Railroads not to have any, in competing water lines 13-14 
 
 Interlocking directorates 67, 68 
 
 Interlocutory injunction. Commission's order 53, 54 
 
 Intermediate railroad, through route to include 31 
 
 Intermediate rates, through rates in excess of 12 
 
 Interstate Commerce Commission: ^ 
 
 Annual report to Congress 48 
 
 Appointment of Commissioners 24 
 
 Approve — 
 
 Examinations for district inspectors 118 
 
 Rules for boiler inspection 118 
 
 Authority to relieve, from fourth section 13 
 
 Authorization by, for released rates on baggage and live stock 46 
 
 Bids for purchases between corporations to be supervised by 69-70 
 
 Carriers' agent's name filed in office of 51 
 
 Change of classification under parcel post 92 
 
 Chief inspector shall make annual report to 120 
 
 Commissioners not to engage in other business 24-25 
 
 Compensation to be fixed by, for transporting employees in valuation 
 
 service 42 
 
 Consent of, to change rate of parcel post 92-93 
 
 Creation of 24 
 
 Designate appliances 103 
 
 District inspectors appointed by 118 
 
 Duty of— 
 
 Accident-report act 107 
 
 Ash-pan act 113 
 
 Hours-of-service act Ill 
 
 Safety-appliance acts 105 
 
 Employees of 34, 37, 44, 45 
 
 Enlargement of, provided for 50 
 
 Enumeration of powers not exclusive 32 
 
 Expenses, how paid 37 
 
 Final appeal to, boiler-inspection act 120 
 
 Information as to violations of ash-pan act 113 
 
 Investigate accidents 107 
 
 Jurisdiction as to safety-appliance acts 105 
 
 May — 
 
 Apply to court for enforcement of order 35 
 
 Determine element of classification and form of valuation results ... 39 
 
 Determine its own procedure 36, 37, 39 
 
 Establish through routes and joint rates 30 
 
 Extend time for compliance-r- 
 
 Hours-of-service act Ill 
 
 Safety-appliance acts 101, 104 
 
 Grant rehearing 35 
 
 Institute inquiry on its own motion 27 
 
 Modify requirements of section 6 16-17 
 
 Order switch connection, if practicable 11 
 
 Order testimony taken by deposition 26 
 
 Prescribe division of joint rates 30 
 
INDEX. 141 
 
 Interstate Commerce Commission — Continued. Page. 
 May — Continued. 
 
 Prescribe maximum charges 29 
 
 Prescribe uniform system of accounts 42, 43 
 
 Suspend and determine propriety of new rates 29 
 
 Suspend or modify its orders 34 
 
 Not more than four commissioners from same political party 50 
 
 Pecuniary interest of commissioner 36 
 
 Prescribe form of accident reports 107 
 
 Production of books, papers, etc., before 25, 56 
 
 Qualifications of commissioners 24, 36, 50 
 
 Quorum, majority constitutes 36 
 
 Begulations for transportation of explosives 114-115 
 
 Remaining commissioners to exercise all powers 25 
 
 Reports and decisions to be published, etc 28 
 
 ■ Reports of purchases by carriers to 70 
 
 Reports to Congress on physical valuation work 36, 50 
 
 Salary of commissioners 50 
 
 Term of office of commissioners, seven years 50 
 
 To approve charges of Lake Erie & Ohio River Ship Canal 91 
 
 To— 
 
 Determine question of competition between rail and water lines .... 14 
 Enforce compliance with Clayton Antitrust Act where applicable to 
 
 common carrier 70 
 
 Fix reasonable rates for canying mail matter 95, 97 
 
 Inquire into management of business 25 
 
 Investigate and report value of property of carriers 37 
 
 Investigate block-signal system 122 
 
 Vacancies provided for ,. . . 50 
 
 Valuation of carriers' property by 37 
 
 Violation of hours-of-service act Ill 
 
 Interstate commerce defined 108 
 
 Interveners, proceedings before commission or board under Clayton Anti- 
 trust Act 71 
 
 Inventory of property of carriers 37 
 
 Investigation : 
 
 Commission may institute, on its own motion 20, 27, 88 
 
 Commission to investigate practicability, etc., for switch connection. ... 11 
 
 Commission's power to investigate accidents 107 
 
 Defective-boiler accidents 120 
 
 In such manner and by such means as it shall deem proper 27 
 
 Medals-of-honor committee may conduct 110 
 
 Of new schedules 29 
 
 Physical valuation of property , . . . . 37 
 
 To determine question of competition between rail and water carriers. . . 14 
 
 Investment, acquiring stock for purposes of, not prohibited 65, 66 
 
 Irreparable damage, issuance of temporary restraining order without notice 
 
 against, under Clayton Antitrust Act 74 
 
 Joint classification, commission may establish 29, 30 
 
 Joint interchangeable 5,000-mile tickets, issuance of 49 
 
 Joint plaintiffs may sue joint defendants in courts on awards of damages. ... 33 
 Joint rates: 
 
 Between rail and water carrier to foreign country via Panama Canal ... 20 
 
 Commission may establish 30 
 
 Commission may prescribe maximum 29 
 
 Divisions of 29, 30 
 
 Notice of change 16 
 
 Printing and posting schedules 15 
 
 Rail and water carriers 20 
 
 Joint suit, judgment against defendant found liable 34 
 
 Joint tariffs must name carriers participating 17 
 
 Jointly liable, carrier and shipper, for unjust discriminations 24 
 
 Judges, no successors to, of former Commerce Court 53 
 
 Judgment, joint suit, recovery against defendant found liable 34 
 
 Judicial notice, commission's seal 36 
 
142 INDEX. 
 
 Jurisdiction: 
 
 Circuit and district courts for writ of mandamus 50 
 
 Circuit court of appeals — 
 
 For enforcement of, under Clayton Antitrust Act 72 
 
 Under Clayton Antitrust Act, exclusive 72 
 
 Commerce Court transferred to district courts 52 
 
 District courts^ — 
 
 For violation of act 22 
 
 To restrain violations of Clayton Antitrust Act -. 73 
 
 Offenses under pass provision 10 
 
 State and Federal courts, Clayton Antitrust Act 69 
 
 Traffic through Panama Canal 19 
 
 Just and reasonable charges 8 
 
 Justification of switch connection, commission to investigate 11 
 
 Laboratory samples under explosive act 114 
 
 Ladders, cars must be equipped with .'. 1(53 
 
 Lake Erie & Ohio River Ship Canal act 91 
 
 Land-grant deductions for carrying mail matter 97 
 
 Land grants: 
 
 Allowances and concession in consideration of 39 
 
 Value of 39 
 
 Land of carriers, valuation of 38 
 
 Lateral line, application of, for switch connection 11 
 
 I^ease: 
 
 Conditioned upon lessee not to deal with competition, unlawful 65 
 
 On competing water line, railroad not to have 13-14 
 
 Leased line included in term " railroad " 8 
 
 Legal rate, rate filed held to be 59 
 
 Legislation, recommendation for additional 48 
 
 Less compensation: 
 
 For longer than for shorter haul 12 
 
 Than tariff rate 17 
 
 Letter : 
 
 Notice of tentative valuation by registered 40 
 
 Telegraph, etc. . -' 8-9 
 
 Liability : 
 
 Carrier not relieved from 104 
 
 Existing, not affected 51-52 
 
 For full actual loss 45 
 
 Initial line for damage 47 
 
 Lien, assertion of, as refusal to .deliver 80 
 
 Lien of carriers: 
 
 Goods covered by order bill 82 
 
 Goods sold to satisfy 82 
 
 Live saving on railroads 108 
 
 Limitation of actions: 
 
 Complaints for the recovery of damages filed within two years 33 
 
 One year for enforcement of order for payment of money 33 
 
 Hours-of-service act Ill 
 
 Period for institution of suits 47 
 
 Six years in rebate cases 60 
 
 Limitation of liability, actual loss, damage, or injury 45 
 
 Linemen of telegraph and telephone companies, passes to 9-10 
 
 Lines, Government-aided telegraph, operated for use of Government 88 
 
 Live stock: 
 
 Hauling defective cars by chains permitted 105 
 
 Necessary caretakers, passes to 9-10 
 
 Ordinary, defined 47 
 
 Released rates dependent upon value 46 
 
 Load and count, shippers 80, 91 
 
 Loading and unloading, .loss or damage due to delay in 47 
 
 Loading explosives, Commission to regulate 114-115 
 
 Local rates, through rates in excess of combination of 12 
 
 Locomotive and tender and all parts and appurtenances included to be in safe 
 
 condition 121 
 
INDEX. 143 
 
 Locomotives; Page. 
 
 Must be provided with ash pan 113 
 
 Power driving-wheel brakes 98 
 
 When exempted from ash-pan act 113 
 
 Long and short haul provision 12 
 
 Long commodities, brakes on cars used in hauling 103 
 
 Loss and damage, injunctive relief against, under antitrust act 74 
 
 Loss: 
 
 Carrier issuing receipt or bill of lading shall be liable for 45 
 
 Due to delay in loading and unloading 47 
 
 Mail: 
 
 Pay for, existing method to be temporarily maintained 94, 97 
 
 Railways compensation to be fair and reasonable 95 
 
 Revenue received by railroad companies from express companies 93 
 
 Weight of, taken 94 
 
 Mail bags, return of 94 
 
 Mail matter: 
 
 Additional weighing pending hearing to determine compensation 96 
 
 Classification of carriers for compensation 96 
 
 Carrying other than first class 93 
 
 Interstate Commerce Commission to fix reasonable rates for carrying. . . . 95, 97 
 
 Land-grant deductions 97 
 
 Order of Interstate Commerce Commission fixing reasonable compensation 96, 97 
 Plan for pay, etc., to be filed by Postmaster General with Interstate Com- 
 merce Commission 96 
 
 Postal c. 1. or 1. c. 1. rates for fourth-class matter and periodicals 94 
 
 Procedure for ascertainment of rates and compensation of railroads for 
 
 carrying 95 
 
 Relation of railroads to Government to be considered in fixing reasonable 
 
 rates for carrying 95 
 
 Slower service for third and fourth classes and periodicals 94 
 
 Mail Service, Railway, passes to employees 9-10 
 
 Mailable articles, parcel post, change in classification 92 
 
 Mailable matter under parcel post 92 
 
 Mails in freight trains 93 
 
 Mails, railroad to give oath as to performance of service 93 
 
 Management of business. Commission to inquire into 25 
 
 Mandamus : 
 
 District courts to compel by compliance with valuation provision 41, 42 
 
 Peremptory writ, when used 50 
 
 Remedy shall be cumulative 50 
 
 To compel carrier to comply with act 49-50, 88 
 
 To compel furnishing of cars and movement of traffic 49 
 
 To enforce order of Commission against Government-aided lines 88 
 
 Manufactured products of timber excepted from commodities clause 11 
 
 Maps to be furnished to Commission by carriers 39 
 
 Marking explosives. Commission to regulate 115 
 
 Marking packages for transportation 9 
 
 Maximum rates and charges. Commission may prescribe 29 
 
 Medals of honor act 108-110 
 
 Applications for medals, with affidavits 109 
 
 Approval of President 110 
 
 Committee to consider affidavits 109 
 
 Design of medal 108, 110 
 
 Expense provided for 109 
 
 Investigation by inspectors HO 
 
 Life saving, medals for lOg 
 
 President to grant medals 108 
 
 Proof must be offered 108 
 
 Regulations governing awards 109 
 
 Rosettes and ribbons lOg 
 
 Memoranda : 
 
 Commission's agents shall have access to 93 
 
 Form of. Commission may prescribe 44 
 
 Memoranda or acknowledgments, indication of negotiability 77 
 
144 INDEX. 
 
 Mileage : Page. 
 
 For witnesses -, 37 
 
 Tickets, issuance of, not prohibited 49 
 
 Military traffic, to be expedited in time of war 17 
 
 Milk, passes to necessary caretakers of 9-10 
 
 Ministers of religion, passes to 9, 48 
 
 Minor children of deceased employees of carriers, passes to 10 
 
 Misdemeanor : 
 
 Committed by corporation 58 
 
 Common carrier and officer purchasing, etc., without bids 70 
 
 Discrimination by Government-aided lines 89 
 
 Failure to publish rates 58 
 
 Failure to report accidents 106 
 
 For carrier to permit transportation at less than regular rates.' 22 
 
 For disclosing information concerning shipments 32 
 
 Forging or counterfeiting bills of lading 85 
 
 Mutilation of records 44 
 
 Shipper inducing carrier to discriminate 24 
 
 To give or receive rebates 58 
 
 To obtain less than regular rates by shipper 23 
 
 Violation of act 22 
 
 Violation of pass provision 10 
 
 Misstatement of rate, penalty for 18 
 
 Modify, Commission may, or suspend its orders 34 
 
 Money damages: 
 
 Award of, by Commission 33 
 
 Order for payment of, to be enforced in courts 33 
 
 Money of carriers: 
 
 Derived from sale of land grants .- 39 
 
 Expenditure of, valuation report shall show '. 38 
 
 Monopolies and restraints, expedition of suits in equity against 62 
 
 Monopolies, Clayton Antitrust Act 64, 65 
 
 Monopoly, acquisition of stock of competitor, prohibited 66 
 
 Monthly reports of earnings and expenses 43 
 
 Motion, Commission may institute inquiry on its own 20, 27, 88 
 
 Municipal government: 
 
 Complaint by 27 
 
 Free or reduced rates for 48 
 
 Suteidy or donation from, to carriers 38-39 
 
 Munitions of war for military and naval forces, explosives act 114 
 
 Mutilation of records of carrier, misdemeanor 44 
 
 Mutual savings bank, directors and officers in 67 
 
 National Guard, reduced rates to 48 
 
 National homes for soldiers, passes to inmates of 9, 48 
 
 Natural persons, immunity extends only to 57 
 
 Necessary agents, passes to 9, 48 
 
 Negligence, damage due to 47 
 
 Negotiability of order bills of lading 76, 77, 83 
 
 Net earning, valuation report shall show 38 
 
 New schedule 29-30 
 
 Newsboys on trains, passes to 9-10 
 
 Nitroglycerin under explosives act 115 
 
 Notice : 
 
 Change in rates by Lake Erie 4 Ohio River Ship Canal 91-92 
 
 Change of joint rates _ 16 
 
 Interlocutory injunction, application for. 53 
 
 Issuance of temporary restraining order without, under Clayton Anti- 
 trust Act 74 
 
 Preliminary, not to issue without notice under Clayton Act 74 
 
 Service on Washington agents 51 
 
 Taking deposition 26 
 
 To be given on completion of valuation of carriers 40 
 
 To carriers and hearings by Interstate Commerce Commission on railway 
 
 mail pay 96 
 
 Nurses attending persons injured in wrecks, passes to 9-10 
 
INDEX. 145 
 
 Oath ; _ Page. 
 
 Accident investigations 107 
 
 Annual report of carrier, how taken 44 
 
 Annual reports of carriers to be under 43 
 
 Special agents or examiners, power to administer 37, 45 
 
 Oaths and affirmations, any member of Commission may administer 36 
 
 Offense : 
 
 Each day of agreement for pooling, etc., separate 13 
 
 Each day separate, for failure to obey orders under section 15 34 
 
 OfBce, principal: 
 
 Of carrier, venue of suit 33-34, 53 
 
 Of Commission in Washington 37 
 
 OflScer : 
 
 Bank, eligibility of 67 
 
 Carrier prohibited from making purchases with another corporation hav- 
 ing same 69 
 
 Embezzlement of funds by, of common carrier 69 
 
 In more than one bank, prohibited 67 
 
 In more than one bank where entire stock is owned by the other 68 
 
 Liability for violation of act 22 
 
 Of carrier, passes to " 9, 48 
 
 Private bank and bank organized under United States laws 67 
 
 OiBces and supplies. Commission shall hire and procure 37 
 
 Offices of chief and district inspectors 117, 118 
 
 Official act, entered of record 36 
 
 Official seal. Commission shall have 36 
 
 Offset against regular charges prohibited 59 
 
 Oil locomotives excepted from ash-pan act 113 
 
 Oil, transportation, subject to act 7 
 
 Operating reports, accidents not reported in 106 
 
 Operation : 
 
 Government-aided lines 87 
 
 Of competing water line by railroad 13-14 
 
 Operator, period of duty, hours-of-service act Ill 
 
 Order bills of lading {see also Bills of lading and Delivery) : 
 
 Defined 76 
 
 Order, definition of, under bills-of -lading act 86 
 
 Orders : 
 
 Application for rehearing does not stay 35 
 
 Carriers must comply with 34 
 
 Commission may appeal to courts for enforcement of, under Clayton 
 
 Antitrust Act 71 
 
 Commission may make an award of damages 33 
 
 Commission may suspend or modify 34, 36, 41 
 
 Competition between rail and water carrier to be final 14 
 
 District courts to enforce 55 
 
 Enforcement of order for payment of money 33 
 
 Enforcement of physical connection, Panama Canal 20 
 
 Failure to comply with 18 
 
 Fixing reasonable compensation for carrying mail matter 96, 97 
 
 Mandamus to enforce against Government-aided lines 88 
 
 May be modified under Clayton Antitrust Act 71 
 
 Payment of money 28 
 
 Prescribing maximum charges 29 
 
 Procedure, petition for, from enforcement of order under Clayton Anti- 
 trust Act 73 
 
 Report in writing stating 28 
 
 Restraining, reasons for issuance, shall be specific under Clayton Anti- 
 trust Act •_ 75 
 
 Service of Commission's, on agent in Washington 34 
 
 Shall continue in force two years 29 
 
 Shall take effect within reasonable time for payment of money 29 
 
 Supplemental orders 29 
 
 Suspension or annulment 41, 53, 54 
 
 Switch connection, enforcement of 11 
 
 64823°— 17 10 
 
146 INDEX. 
 
 Orders — Continued. Page. 
 Temporary restraining, issuance of, without notice, under Clayton Anti- 
 trust Act 74 
 
 To be issued where violation of antitrust act 71 
 
 Under Clayton Act does not relieve from antitrust acts 73 
 
 Ordinary live stock, defined 47 
 
 Organizations, complaint to Commission by 27 
 
 Original cost, valuation report shall show 38 
 
 Orphan Homes for Soldiers and Sailors, passes to inmates of 48 
 
 Ownership: 
 
 Cars, facilities, etc » 8 
 
 Of competing water line by railroad 13-14 
 
 Packages containing explosives shall be marked 115 
 
 Packing explosives. Commission to regulate 115 
 
 Packing property for transportation 9 
 
 Panama Canal: 
 
 Jurisdiction over traffic through 19 
 
 Kailroad not to have interest in competing water carriers operated 
 
 through 13-14 
 
 Via, from port in United States to foreign country 20 
 
 Violators of Sherman Act not to use 15 
 
 When certain lines subject to act 14 
 
 Papers : 
 
 Commerce Court, sent to Department of Justice 55 
 
 Commission may require production of 25, 39 
 
 Courts may compel production of 25, 61 
 
 No person excused from producing 56 
 
 Parcel post 92 
 
 Parties : 
 
 Complaints to Commission 27 
 
 Injunction and restraining order under Clayton Antitrust Act 74 
 
 Interest, under Elkins Act 60 
 
 Interested, may appeal from enforcement of order under Clayton Anti- 
 trust Act 72 
 
 Joint defendants may be sued on award of damages 33 
 
 Joint plaintiffs may sue on award of damages 33 
 
 May appear in person or by attorney 36 
 
 May be summoned before court under Clayton Antitrust Act 73 
 
 Notice to, of tentative valuation 40 
 
 Shall be furnished with copy of report 28 
 
 Passenger railways, street electric, through route and joint rate with 30 
 
 Passenger vehicles, explosives act 114 
 
 Passengers and property to and from connecting line 12 
 
 Passes : 
 
 Interchange of 10 
 
 Prohibited and exceptions 9, 48 
 
 Patents, no inspector shall be interested in 118 
 
 Peace, Shipments consigned to United States in times of 18 
 
 Pecuniary interest in proceeding, commissioner shall not participate 36 
 
 Penalty : 
 
 Accidents-report act 107 
 
 Ash-pan act 113 
 
 Boiler-inspection act 121 
 
 Common carrier and officer purchasing, etc., without bids 70 
 
 Compulsory-testimony act 56 
 
 Corporation subject to 58 
 
 Disclosing information concerning shipments 32 
 
 Discrimination by Government-aided lines 89 
 
 Each day separate oflFense 14 
 
 Embezzlement by president, etc., of common carrier 69 
 
 Examiner subject to, who divulges information 45 
 
 Explosives act 115-116 
 
 Failure of carrier to file annual report 43 
 
 Failure of Government-aided lines to file annual reports 90 
 
 Failure to comply with regulations or order of Commission 18 
 
 Failure to obey orders under section 15 34 
 
 Failure to publish rates, Elkins Act 58 
 
INDES. 147 
 
 Penalty — Continued. Page. 
 
 False billing, etc., by carrier 22 
 
 Falsifying record, etc 44 
 
 Forging or counterfeiting bills of lading 85 
 
 Greater or less compensation than published tariffs 49, 58 
 
 Hours of service act Ill 
 
 Inducing carrier to discriminate 24 
 
 Misstatement of rate in writing 18 
 
 No exemption of antitrust laws by enactment of Clayton Act 67 
 
 No person testifying subject to, in certain cases 21, 26, 56, 57, 61 
 
 Obtaining less than regular rates by fraud 23 
 
 Of imprisonment shall not apply to artificial persons 23 
 
 Preventing bidding or competition among bidders 70 
 
 Refusal to comply with order of court 26 
 
 Refusal to testify 56-57 
 
 Safety appliance, acts 100, 102, 104, 105 
 
 Violating pass provision 10 
 
 Violation of act 22 
 
 Violation of valuation provisions 41 
 
 Pending cases not impaired or affected 48, 51, 62 
 
 Pensioned employees, passes to 10 
 
 Percentage of power brakes 102 
 
 Peremptory mandamus when question of compensation raised 50 
 
 Perishable freight, chains may be used in hauling 105 
 
 Perjury may be punished 56 
 
 Personal baggage 9 
 
 Personal inspection of boilers 119 
 
 Person, definition of, under bills of lading act 86 
 
 Persons, injured in wrecks 9-10 
 
 Person or persons to include corporations and associations under Clayton 
 
 Antitrust Act 64 
 
 Pestilence, carrying passengers free in case of 10 
 
 Petition : 
 
 Complaints to Commission by 27 
 
 Shall state facts briefly 27 
 
 Philippine Islands not included under Clayton Antitrust Act 64 
 
 Physical connection: 
 
 Between lines of rail carrier and docks of water carrier 19 
 
 With lateral, branch line or private sidetrack 11 
 
 Physicians : 
 
 Attending to persons injured in wrecks, passes to 9-10 
 
 In employ of carriers, passes to 9 
 
 Pipe lines subject to act 7 
 
 Pleading: 
 
 Complaint to Commission by petition 27 
 
 Propriety of new rates determined without formal 29 
 
 Political party, number of Commissioners from same 50 
 
 Pomerene Act 76 
 
 Pooling of freights and division of earnings forbidden 13 
 
 Port of entry or transshipment 7 
 
 Ports, proportional rates to and from 20 
 
 Posting: 
 
 Name of carriers' agent 18-19 
 
 Schedules 15 
 
 Schedules of Lake Erie & Ohio River Ship Canal 91 
 
 Service by, in office of Commission's secretary 51 
 
 Postmaster General: 
 
 Authority of, not impaired 91 
 
 Employment of clerical force' in connection with determining railway 
 
 mail pay 96 
 
 Post-office inspector, passes to 9-10 
 
 Poultry, necessary caretakers, passes to 9-10 
 
 Power brakes must be provided 102 
 
 Powers: 
 
 And duties of Commission 25 
 
 Enumeration of, not exclusive 32 
 
 Practicability of switeh connection. Commission to investigate 11 
 
148 INDEX. 
 
 Practices : Page. 
 
 CommiBsion may prescribe reasonable, for carriers 28-29 
 
 Commission may prescribe rules of 36 
 
 Of carrier, must be just and reasonable 9 
 
 Preference: 
 
 Unreasonable, unlawful 12 
 
 Military traffic in time of war 18 
 
 Prejudice, unreasonable, unlawful 12 
 
 Presenting property for transportation, regulations affecting 9 
 
 President : 
 
 Appoint chief insjJector and two assistants 117 
 
 Approve medals-of -honor committee report 110 
 
 Authorized to issue medals of honor 108 
 
 May remove Commissioner 24 
 
 To appoint Commissioner 50 
 
 Press messages 8-9 
 
 Prices, no discrimination in, by persons engaged in commerce 65 
 
 Prima! facie evidence: 
 
 Final valuation of carriers 41 
 
 Final valuation of property 41 
 
 Findings in reports 33 
 
 Tariffs, etc., filed with Commission 35 
 
 Principal office of carrier, venue of suit 53 
 
 Principal office of Commission in Washington 37 
 
 Printed for distribution, annual reports 28 
 
 Printing schedules 15 
 
 Private : 
 
 Banker, director, etc., in bank organized under United States laws 67-68 
 
 Car service 8, 32 
 
 Docks, switch connection in 19-20 
 
 Individuals, subsidy or donation from to carriers 38, 39 
 
 Sidetrack, switch connection to 11 
 
 Privileges : 
 
 None unless specified in tariff 17 
 
 Printing and posting contained in tariffs 15-16 
 
 Procedure : 
 
 Appeal from enforcement of order under Clayton Antitrust Act 73 
 
 Circuit court of appeals, enforcement of order under Clayton Act 71-72 
 
 Commission may determine its own 36, 37 
 
 District courts, suits to enforce or set aside orders 53 
 
 Investigating complaint under Clayton Antitrust Act 71-72 
 
 To restrain violations of Clayton Antitrust Act 73 
 
 Process : 
 
 Service of, complaints, etc., under Clayton Antitrust Act 73 
 
 Service of, where defendant carrier has its principal office 34 
 
 Service on Washington agents 51 
 
 Production : 
 
 Books and papers, action for damages 21 
 
 Books, papers, tariffs, etc 25, 26 
 
 Profiles to be furnished to Commission by carrier 39 
 
 Profit and loss, balance of, annual report of carrier shall show 43 
 
 Proof of deserving must be shown, medals of honor act 108 
 
 Property of carriers: 
 
 Commission's agents shall have access to 39 
 
 Held for other than common carrier purposes, valuation 3S 
 
 Report of ownership of Government-aided lines 90 
 
 Valuation of, by Commission 37 
 
 Proportion of joint rates 29-30 
 
 Proportional rates to and from ports defined 20 
 
 Proposed rates, suspension of 29-30 
 
 Propriety, Commission may determine, of new schedules 29 
 
 Prosecution : 
 
 Cost and expense of 25, 34 
 
 Jurisdiction of State and Federal courts, Clayton Antitrust Act 69 
 
 Proper district for 69 
 
 Protest: 
 
 Of valuation 40 
 
 On Commission's valuation of carriers 40 
 
INDEX. 149 
 
 Page. 
 
 Proxies, acquisition of stock and voting by competitor prohibited 66 
 
 Public: 
 
 Inspection of records and dates on valuation 40 
 
 Inspection of schedules, etc 16 
 
 Proceedings on request of party Interested 36 
 
 Records, tariffs, etc., filed with Commission shall be preserved as 35 
 
 Publication : 
 
 Reports and decisions of Commission 28 
 
 Schedules of Lake Erie & Ohio River Ship Canal 91 
 
 Published rates: 
 
 Failure to publish rate a misdemeanor 58 
 
 Must prevail 59 
 
 Purchase, to, definition of under bills of lading act 86 
 
 Purchases: 
 
 Carrier prohibited from making, with another corporation having same 
 
 officers 69 
 
 Reports of, to be made to Commission 70 
 
 Qualifications of Commissioners 24, 36, 50 
 
 Quorum, majority of Commissioners for transaction of business 36 
 
 Quotation of rates in writing, when to be furnished 18 
 
 Railroad : 
 
 Government-aided 87 
 
 State, commissioners, complaints by 27 
 
 Subject to act, when 7 
 
 Young Men's Christian Association, pass to traveling secretary 9 
 
 Railroad defined 8 
 
 Hours of service act 110 
 
 Boiler inspection act 116 
 
 Railway Mail Service: 
 
 Employees, passes to 9-10 
 
 Pay 93 
 
 Rates: 
 
 Annual report of carrier concerning 43 
 
 Device to avoid regular 22, 23, 58 
 
 Filed or participated in, deemed legal 59 
 
 Filing and posting 15-16 
 
 Government-aided lines 87 
 
 Just and reasonable 8, 29 
 
 Lake Erie & Ohio River Ship Canal 91 
 
 Less for longer than for shorter haul 12 
 
 Maximum, Commission may prescribe 29 
 
 New, Commission may determine propriety 29 
 
 Proportional, to and from ports 20 
 
 Public records, when filed with Commission ^5 
 
 Published, to be strictly observed 17 
 
 Regulations, reasonable, affecting 9, 15-16 
 
 Rules, reasonable, affecting 15-16 
 
 Suspension of, by Commission 29-30 
 
 Unduly preferential or prejudicial 12 
 
 Unless filed, carrier not to transport 17 
 
 Written statement of 18 
 
 Reargument, equal division of opinion under expediting act 63 
 
 Reasonable charges; 
 
 Burden of proof 30 
 
 Commission to determine reasonableness 29 
 
 Lake Erie & Ohio River Ship Canal , 91 
 
 Must be 8 
 
 Order of Commission prescribing 29 
 
 Reasonable time, answer to complaint to be made in 27 
 
 Rebate : 
 
 Injunction against 60 
 
 Lake Brie & Ohio River Ship Canal 91 
 
 Offering or soliciting, a crime 12, 58 
 
 Penalty 22, 58 
 
 Prohibited 12, 17, 58, 59 
 
150 INDEX. 
 
 Page. 
 Receipt of property, services in connection with included in term "transpor- 
 tation" 8 
 
 Receipts: 
 
 Carrier shall issue 45 
 
 Exempting carrier from liability 45 
 
 False, by shipper, to obtain refund, etc 23 
 
 Reasonable regulations affecting 9 
 
 Receivers : 
 
 Account of 44 
 
 Included in ash-pan act 113 
 
 Penalty for violation of valuation provision 41 
 
 Receiving of property: 
 
 For transportation 9 
 
 Within one State not subject to act 7-8 
 
 Receiving passengers and property from connecting line 12 
 
 Recommendation for additional legislation 48 
 
 Records of carriers: 
 
 Commission's agent to have access to 39, 44 
 
 Destruction of, Commission may permit 45 
 
 Form of. Commission may prescribe 44 
 
 To be furnished to Commission 39 
 
 Records of Commission, public inspection of 40 
 
 Reduced rates: 
 
 National Guard 48 
 
 Passes and exceptions 9, 48 
 
 Reduction in rates: 
 
 Commission may require 29 
 
 Lake Erie & Ohio River Ship Canal 91 
 
 To meet competition of water route 13 
 
 Reexamination of defective boilers 119-120 
 
 Refrigeration services included in term "transportation" 8 
 
 Refund : 
 
 False, means by shipper to obtain 23 
 
 Of portion of te,riff rate 17 
 
 Refusal to testify or produce documents 56 
 
 Registered letter, notice of tentative valuation by 40 
 
 Regulations : 
 
 Annual report of carrier concerning 43 
 
 Carriers', must be just and reasonable 9 
 
 Carriers', to be printed and posted 15-16 
 
 Commission may prescribe 28-29 
 
 Commission to prescribe for transporting explosives 114-115 
 
 Commission's, failure to comply with 18 
 
 Commission's, to have full force of law 39-40 
 
 Governing award of medals 109 
 
 Rehearing: 
 
 Application for, shall not excuse compliance vnth order 35 
 
 Commission may grant 35 
 
 Report and order under Clayton Antitrust Act, may be modified 71 
 
 Rejection, tariffs may be rejected for filing 18 
 
 Real property, valuation of 38 
 
 Release as to value, unlawful 46 
 
 Relief trains excepted, hours-of-service act 112 
 
 Remanding commerce court cases to district courts 55 
 
 Remedies : 
 
 Civil, enactment of Clayton Act does not exempt antitrust laws 67 
 
 Complaint to Commission or suit in court 21 
 
 Provision of act in addition to 45 
 
 Under existing law not barred 45 
 
 Remitting of portion of tariff rate 17 
 
 Removal of suit under section 20 from State court 47-48 
 
 Reorganization, valuation report on 38 
 
 Repair, defective cars may be hauled for 104 
 
 Reparation : 
 
 For injury 27 
 
 Report shall include finding of fact 28 
 
 Suits for 21, 33 
 
INDEX. 151 
 
 Kepeal: Page. 
 
 Antitrust law not repealed by Clayton Act 67 
 
 Of laws in conflict 56, 62, 91, 107 
 
 Repeated messages 8-9 
 
 Reports: 
 
 Accident, form of 107 
 
 Chief inspector to make 120-121 
 
 False, or weight, by carrier or shipper 22-23 
 
 Not evidence 107-121 
 
 Reports of carriers: 
 
 As to value of property, may be required 40 
 
 Carriers' engineer's reports to be furnished the Commission 39 
 
 Commission may require and prescribe method of making 42 
 
 Government-aided lines 90 
 
 Monthly, of earning and expenses 43 
 
 Purchases made to Commission 70 
 
 Special or periodical 43 
 
 Statistics in, are public records 35 
 
 To be filed by Sept. 30 of each year 43 
 
 Under boiler-inspection act 119 
 
 Reports of Commission: 
 Annual — 
 
 Printed for distribution 28 
 
 To Congress 48 
 
 Competent as evidence 28 
 
 Concerning valuation work 39, 40 
 
 Must be entered of record and furnished parties 28 
 
 To Congress, block-signal systems 122 
 
 To Congress, on valuation of carriers 39, 40 
 
 Under Clayton Antitrust Act to be in writing 71 
 
 Representations, false, to obtain less than published rate 23 
 
 Reproduction, cost of 38 
 
 Reproduction cost, valuation report shall show 38 
 
 Residence of petitioner, venue of suit '. 53 
 
 Resolution of Congress deferring effective date of section 10 of Clayton Anti- 
 trust Act 75 
 
 Restraining order: 
 
 Reasons for issuance shall be specific under Clayton Antitrust Act 75 
 
 Temporary, issuance of, without notice under Clayton Act 74 
 
 Restraints and monopolies, expedition of suits involving 62 
 
 Restraints in commerce, Clayton Antitrust Act 65 
 
 Retroactive: 
 
 Amendments to act shall not be 48, 51, 62 
 
 Bills of lading act not to be 86 
 
 Clayton Act not to be 67 
 
 Interlocking directorates 68 
 
 Penalty under hours-of-service act not to be 112 
 
 Return of cars 8 
 
 Revenue of carrier: 
 
 Carrier's report of 42 
 
 Valuation report shall show earnings 38 
 
 Revenue received by railroad companies from express companies for mail 93 
 
 Revenue trains, hauling defective cars by means of chains 105 
 
 Reverse, Commission may, on rehearing, its orders 36 
 
 Revision of valuation 40 
 
 Right of way: 
 
 Commission's agents shall have access to 39 
 
 Valuation of 38 
 
 Risk: 
 
 Employees shall not assume 101 
 
 Must be assumed by carriers using defective appliances 104 
 
 Rockets under explosives act II4 
 
 Roll, false, by shipper, to obtain refund, etc 23 
 
 Routing: 
 
 Duty to observe routing instructions 31 
 
 Shipper may designate 31 
 
152 INDEX. 
 
 Rtiles and instructions: Page. 
 
 Carriers shall file 118 
 
 Chief inspector to file if carriers fail 118 
 
 For district inspectors 119 
 
 May be changed 118 
 
 Shall be approved "by Commission 119 
 
 Rules of carrierai 
 
 Commission may prescribe 28-29 
 
 Must be jusb and .reasonable 8 
 
 To be printed and posted 15-16 
 
 Bules of Commission: 
 
 Commission's rules to have full force of law 39, 40 
 
 Eules of procedure 36 
 
 Running boards, cars must be equipped with 103 
 
 Safety-appliance acts 99-106 
 
 Assumption of risk 101 
 
 Automatic couplers 99 
 
 Carriers subject to act 99, 101, 103 
 
 Cars of connecting lines refused 99 
 
 Chains, hauling by 105 
 
 Commission to designate appliances 103 
 
 Compliance with act, time for 101, 104, 105 
 
 Defective cars may be hauled to nearest repair point 104 
 
 Drawbars 100-101, 104 
 
 Driving-wheel and train brakes 99 
 
 Enforcement by Commission 105 
 
 Exceptions 100, 102 
 
 Grab irons and handholds 100-101, 103 
 
 Inspectors provided for 106 
 
 Judgments and decrees of circuit courts of appeals 106 
 
 Ladders 103 
 
 Liability of carriers 104 
 
 Not affected by locomotive-inspection act 122 
 
 Penalty for violation 100, 102, 104, 105 
 
 Percentage of train-braked cars 102 
 
 Power brakes 102 
 
 Running boards, cars to be equipped with 103 
 
 Sill steps, cars to be eqtiipped with 103 
 
 Sailors' Homes, passes to inmates of 9, 48 
 
 Salaries : 
 
 Carriers' employees, annual report of carrier shall show 42 
 
 Commissioners' 36, 50 
 
 Commission's employees, annual report of Commission shall show 50 
 
 Sale of goods to satisfy carrier's lien. 82 
 
 Sale, conditioned upon purchaser not to deal with competitor, unlawful 65 
 
 Sample: 
 
 Baggage 9 
 
 Explosives for laboratory examination 114 
 
 Satisfaction for complaint by carriers 27 
 
 Savings bank, mutual directors and officers in 67-68 
 
 Scales, use for shipper's, for bulk freight 81 
 
 Schedule of rates: 
 
 Commission may determine propriety of new 29 
 
 Commission may prescribe forms 17 
 
 Filed with Commission are public records 35 
 
 Lake Erie & Ohio River Ship Canal 91 
 
 May be rejected 18 
 
 To be published 15 
 
 Unless filed, carrier not to transport 17 
 
 Seal of Commission, judicially noticed 36 
 
 Secretary of Commission: 
 
 Commission shall appoint 36 
 
 Custody of records 35 
 
 Designation of Washington agents filed in ofSce of 51 
 
 On medals of honor committee 109 
 
 Salary of 36 
 
 Service of notice by posting in office of 51 
 
INDEX. 153 
 
 Page. 
 
 Secretaries of railroad Youn^ Men's Christian Association, passes to 9 
 
 Securities of carriers, valuation report shall show 38 
 
 Security, order of Commission to require 20 
 
 Senate : 
 
 Appointment of boiler inspectors confirmed by 117 
 
 Appointment of Commissioners confirmed by 50 
 
 Service : 
 
 Complaints, etc., under Clayton Antitrust Act 73 
 
 How made 51 
 
 Order of Commission on designated agent in Washington 34 
 
 Parties to be furnished with copy of decision 28 
 
 Process, where defendant carrier has its principal office 34 
 
 Tentative valuation notice by registered letter 40 
 
 Washington agent of carrier 51 
 
 When no Washington agent 51 
 
 Services, allowance to owner of property for rendering 32 
 
 Sessions of Commission may be held in any part of the United States 37 
 
 Set-off, includes action under bills of lading act 86 
 
 Severally liable, carrier and shipper, for discrimination 24 
 
 Sherman Act, violators of, not to use Panama Canal 15 
 
 Shipper : 
 
 Application of, for switch connection 11 
 
 False billing, etc., by 23 
 
 Information concerning shipment of 32 
 
 May designate routing 31 
 
 Penalty for soliciting or receiving rebates 58 
 
 When cars may be refused from 99 
 
 Shipper's weight, load, and count 80, 81 
 
 Short haul, charging higher rates for, than for long haul 12 
 
 Short or branch lines, may be acquired by main lines 66 
 
 Side track, private, switch connection with 11 
 
 Similar circumstances and conditions 12 
 
 Signal devices under explosives act 114 
 
 Sill steps, cars must be equipped with 103 
 
 Sleeping car companies: 
 
 Common carriers 8 
 
 Passes to employees 9-10 
 
 Society, complain to Commission by 27 
 
 Soldiers' and Sailors' Homes, passes to inmates of 9, 48 
 
 Special : 
 
 Agent — 
 
 Commission may employ ., 44, 45 
 
 Penalty for divulging information 45 
 
 Cases, application to relieve from fourth section 13 
 
 Rate, unlawful 12 
 
 Service, transportation of men and stores for valuation service 42 
 
 Spurs : 
 
 Included in term "railroad" 8 
 
 To dock of water line 19 
 
 Standard height of drawbars 100, 101, 104 
 
 State: 
 
 Commission, cooperation with 107 
 
 Complaints by 27 
 
 Court — 
 
 Jurisdiction of, to enforce order for payment of money 33 
 
 Removal of suit under section 20 from 47, 48 
 
 Definition of, under bills of lading act 86 
 
 Governments, free or reduced rates for 48 
 
 Homes for disabled volunteer soldiers, passes to inmates of 9, 48 
 
 Subsidy or donation from, to carrier 38, 39 
 
 Transportation not subject to act 7-8 
 
 Statement, false, by shipper, fraud, a misdemeanor 23 
 
 Stations, freight, included in term "railroad" , g 
 
 Statistics : 
 
 Annual report of carrier shall show 43 
 
 In report to Commission are public records 35 
 
 Steps, sill, cars must be equipped with 103 
 
154 INDEX. 
 
 Stock: Page. 
 
 Acquisition of competitor, prohibited 65-66 
 
 Commissioners shall not owji, of carrier 24 
 
 Bailroad not to own, of competing water line 13-14 
 
 Valuation report shall show 38 
 
 Stockholders, annual report of carrier shall show number 42 
 
 Stoppage, device to prevent continuous carriage, unlawful 21 
 
 Stoppage in transitu by seller of goods covered by order bill 85 
 
 Storage : 
 
 Charges to be printed and filed 15-16 
 
 Included in term "transportation" 8 
 
 Regulations affecting 9 
 
 Within one State not subject to act 7-8 
 
 Straight bills of lading (see also Bills of lading). 
 
 Defined T 76 
 
 Street : 
 
 Electric passenger railways, no through route and joint rate with 30 
 
 Railways excepted from safety-appliance acts 102 
 
 Subpoenas : 
 
 Commission may require attendance of witness by 25 
 
 Duces tecum 56 
 
 Parties may be summoned before court under, Clayton Act 73 
 
 Signed by any member of Commission 36, 56 
 
 Witnesses — 
 
 Accident investigations 107 
 
 Block-signal investigations 122-123 
 
 Subsidies: 
 
 Land grants, etc., to railroad and telegraph companies 87 
 
 Valuation report to show 38 
 
 Subsidiary corporations, formation of, not prohibited 66 
 
 Suits : 
 
 Courts or complaint to Commission for damages 21 
 
 Order of Commission — 
 
 Expedition of 54, 60 
 
 Jurisdiction 53 
 
 Period of institution of 47 
 
 Removal from State courts of, under section 20 47-48 
 
 Sherman Act to be expedited 62 
 
 Venue 53 
 
 Superannuated employees of carriers, passes to 10 
 
 Supplemental order, prescribing proportions of joint rates 29 
 
 Supplies, carriers prohibited from making purchases with another corporation 
 
 having same officer 69 
 
 Supreme Court: 
 
 Appeal from suspension or annulment of Commission's order 54 
 
 Appeal to, under expediting act ; 63 
 
 Remanding Commerce Court cases to district courts 55 
 
 Surgeons in employ of carriers, passes to 9-10 
 
 Surplus fund, annual report of carrier shall show 42 
 
 Suspension of new rates by Commission 29-30 
 
 Suspension of orders: 
 
 By Commission 34 
 
 By the courts 54 
 
 Switch connection: 
 
 Between rail and water line 19 
 
 With lateral, branch line or private side track 11 
 
 Switches included in term "railroad" 8 
 
 Syndicating arrangements for issuance of stocks, bonds, or other securities . . 38 
 
 Tariffs : 
 
 Commission may determine propriety of new 29 
 
 Commission ma,y require production of 25 
 
 Failure to publish, a misdemeanor 58 
 
 Filed with Commission are public records 35 
 
 Filing and publishing 15 
 
 Form of, carrier may prescribe 17 
 
 Joint, must specify names of participating carriers 17 
 
 May be rejected 18 
 
INDEX. 155 
 
 Tariffs— Continued. Page. 
 
 No person excused from producing 56 
 
 Rates to be strictly observed 17 
 
 Unless filed, carriers not to transport 17 
 
 Telegraph and telephone operators, hours-of-serviee act Ill 
 
 Telegraph companies: 
 
 Charges shall be just and reasonable 8 
 
 Exchange of passes or franks with common carrier 10 
 
 Exchange of services with common carrier 9 
 
 Government-aided 87 
 
 Linemen of, passes to 0-10 
 
 Messages, classification of 8 
 
 Subject to act 7 
 
 Telegraph line connecting with Government-aided line 87 
 
 Telephone companies: 
 
 Charges shall be just and reasonable 8 
 
 Exchange of passes or franks with common carrier 10 
 
 Exchange of services with common carrier 9 
 
 Linemen of, passes to 9-10 
 
 Messages, classification of 8 
 
 Subject to act 7 
 
 Temporary injunction, violations of Clayton Antitrust Act 74 
 
 Temporary restraining order, issuance of, without notice, under Clayton Anti- 
 trust Act 74 
 
 Tentative valuation 40 
 
 Terminal charges printed, posted, and filed 15-16 
 
 Terminal facilities: 
 
 Included in term "railroad" 8 
 
 Use of, by another carrier 12 
 
 Terminals, of carriers, valuation of : 38 
 
 Territories : 
 
 Complaints by commissioners of 27 
 
 Transportation within, or to or from 7 
 
 Valuation of carriers' property in 39 
 
 Territories included in: 
 
 Act to regulate commerce 7 
 
 Ash-pan act 113 
 
 Boiler-inspection act 117 
 
 Safety-appliance act 101 
 
 Testifying, no person excused from 56 
 
 Testimony: 
 
 Accident investigations 107 
 
 Agents or examiners 45 
 
 Compulsory act 56-57 
 
 Immunity of witness in action for damage 21 
 
 Proceeding before commission or board to be reduced to writing 71 
 
 Through bill of lading: 
 
 Carrier shall issue 31, 45 
 
 Liability of carrier issuing 45 
 
 Through rates in excess of combination of local rates 12 
 
 Through routes: 
 
 Between rail and water carrier to foreign country via Panama Canal .... 20 
 
 Carrier to establish 8 
 
 Commission may establish 30 
 
 Entire length of railroad 31 
 
 Greater compensation than aggregate of intermediates 12 
 
 Bail and water carriers 20, 30 
 
 Terms and conditions of operation 30 
 
 With street electric passenger railways 30 
 
 Through shipments, initial carrier liable for loss or damage 47 
 
 Tickets: 
 
 Commutation, excursion, and mileage 48 
 
 Interchangeable mileage 49 
 
 Issuance, form, and substance 9 
 
 Time schedule, change of 21 
 
 Title to goods, claimed by different persons 80 
 
 Title to goods hj carriers, refusal to deliver §9 
 
156 INDEX. 
 
 Page. 
 
 Tolls, Lake Erie & Ohio River Ship Canal 91 
 
 Torpedoes under explosives act 114 
 
 Tracks : 
 
 Included in term "railroad" 8 
 
 To dock of water carrier 19 
 
 Use of, by another carrier 12 
 
 TrafBc, writ of mandamus to compel movement of 49 
 
 Train brakes: 
 
 Cars must be equipped with 99 
 
 Percentage of cars in> train 102 
 
 Transfer in transit included in term "transportation" 8 
 
 Transport traffic, writ of mandamus to compel carrier to 49 
 
 Transportation : 
 
 Ehity of carrier to furnish 8 
 
 Employees engaged in valuation 42 
 
 Regulations affecting 9 
 
 Subject to act 7 
 
 What the term includes 8 
 
 Wholly within one state, not subject to act 7-8 
 
 Transportation-of-explosives act 114-116 
 
 Exceptions of provisions 114 
 
 Explosives not to be carried 115 
 
 Marking packages 115 
 
 Passenger vehicles 114 
 
 Penalty for violation 115-116 
 
 Regulations affecting 114-115 
 
 Transshipment, port of 7 
 
 Traveling expenses, boiler-inspection act 117, 118 
 
 Traveling secretaries of Railroad Young Men's Christian Associations, passes to 9 
 
 Treasury of the United States, forfeiture payable into 34 
 
 Trust company director, officer or employee in more than one, prohibited .... 67 
 
 Trustees, operating, penalty for violation of valuation provisions 41 
 
 Ultra vires contracts of Government-aided lines 89 
 
 Undue or unreasonable preference or advanta,ge forbidden 12 
 
 Undue or unreasonable prejudice or disadvantage forbidden 12 
 
 Uniform system of accounte, Commission may prescribe 42-43 
 
 United States Board of Mediation and Conciliation, transfer of Commerce 
 
 Court property to 55 
 
 United States: 
 
 Forfeitures payable into Treasury 34 
 
 Free or reduced rates for . . ' 48 
 
 Petition for injunction under Clayton Antitrust Act 74 
 
 Shipments consigned to, shall be delivered without regard to einbargo. . . 18 
 
 Subsidy or donation from, to carriers 38-39 
 
 Unjust discrimination, defined and forbidden 12, 24 
 
 Unlawful discrimination, fine or imprisonment 22 
 
 Unfepeated messages 8-9 
 
 Vacancies, remaining Commissioners to exercise all powers 25 
 
 Valuation, property held for other than common-carrier purposes 38 
 
 Valuation of carriers: 
 
 Carriers required to cooperate 39 
 
 Extensions and improvements 40 
 
 Final prima facie evidence 41 
 
 Grants from the United States to show 38 
 
 Methods and procedure to be prescribed by Commission 39 
 
 Penalty for violation of provisions 41 
 
 Reports to Congress 39, 40 
 
 To whom notice shall be given upon completion 40 
 
 Valuation of carriers' property: 
 
 Analysis of methods to be reported 38 
 
 By Commission 37 
 
 Changes in, carriers required to make report . .'. 40 
 
 Experts for work, Commission may employ 37 
 
 Final- 
 Effect 41 
 
 If no protest filed within 30 days 40 
 
 May be modified or rescinded , . , ,..,..,,...,,...,,., 41 
 
INDEX. 157 
 
 Valuation of carriers' property — Continued. Page. 
 
 Reports to Congress 40 
 
 Revision or correction 40 
 
 Tentative 40 
 
 What valuation reports shall show 37 
 
 Value : 
 
 Actual loss to be recovered notwithstanding agreement as to. ... • 46 
 
 False statement by shipper 23 
 
 Land grants, unsold portion 39 
 
 Of property, carrier's annual report concerning 42 
 
 Of service, rules affecting 15-16 
 
 Vehicles of shipment, included in term "transportation" 8 
 
 Ventilation included in term "transportation" 8 
 
 Venue, suit to enforce or set aside orders 53 
 
 Vessels, railroad not to have interest in competing 13-14 
 
 Violation of act, misdemeanor 22 
 
 Vocation, Commissioners shall have no other 24-25 
 
 Vote of Commission entered of record 36 
 
 Vouchers: 
 
 Approved by_ chairman 37 
 
 False, by shipper to obtain refund, etc 23 
 
 War, preference to military traffic 18 
 
 Washington agent: 
 
 Carrier shall designate 51 
 
 Service of order on 34 
 
 Water line: 
 
 Common control, etc., with rail lines 7 
 
 Interchange of traffic with rail line 20 
 
 Physical connection with rail line 19 
 
 Railroads not to have interest in competing 13-14 
 
 Rates to be filed with Commission, when 14 
 
 Reduction in rail rates to meet competition 13 
 
 Subject to act, when 7 
 
 Through route and joint rate 20, 30, 31 
 
 Transportation wholly by 30-31 
 
 Via Panama Canal 14, 19 
 
 Violators of Sherman Act not to use Panama Canal 15 
 
 Weighing, false: 
 
 By carrier, misdemeanor 22 
 
 By shipper, fraud, a misdemeanor 23 
 
 Weight: 
 
 Limit under parcel post 92 
 
 Use of scales of shipper for bulk freight 81 
 
 Widows of carrier's employees, passes to 10 
 
 Wireless cable companies 7 
 
 Witnesses : 
 
 All existing laws relating to, to apply under this act 50 
 
 Commission may require attendance of 25 
 
 Courts may compel attendance of 25, 61 
 
 Courts may compel production of books, etc 61 
 
 Evidence may criminate, shall not excuse 21, 26, 61 
 
 Fees 27' 37 
 
 Immunity of 57, 61 
 
 Immunity of, in action for damages 21 
 
 May be subpoenaed in accident investigations 107 
 
 Mileage 37 
 
 Passes to 9-10 
 
 Special agents or examiners of Commission may examine 45 
 
 Subpoenas for, block signal investigations 122-123 
 
 Wrecking trains excepted, hours-of-service act 112 
 
 Wrecks, passes to persons injured in; also physicians and nurses 9-10 
 
 Yards included in term "railroad" g 
 
 Young Men's Christian Association, traveling secretaries of railroad, passes to 9 
 
 Zones under parcel post, consent of Commission to change 92-93