THE UNIVERSITY OF ILLINOIS LIBRARY Return this book on or before the Latest Date stamped below. A charge is made on all overdue books. University of Illinois Library UNW \NX1 INTERSTATE COMMERCE AND RAILWAY TRAFFIC COURSE Prepared under Editorial Supervision of Samuel MacClintock, Ph. D. The subjects listed below constitute the basic material of a course in Interstate Commerce and Railway Traffic. This course is especially designed to meet the constantly growing demand for efficiently trained men in railroad and industrial traffic work; to assist students to pass the exam- inations for government service under the Interstate Com- merce Commission; and to meet the demand for men com- petent to direct the work of commercial organizations and traffic bureaus. With the exception of the Atlas of Railway Traffic Maps, the subjects listed below are covered in an average of approximately 200 pages each. Atlas of Railway Traffic Maps Freight Classification; Some Ways of Reducing Freight Charges Freight Rates: Official Classification Territory and Eastern Canada; Bases for Freight Charges Freight Rates: Southern Territory; The Industrial Traf- fic Department Freight Rates: Western Territory Publication and Filing of Tariffs The Bill of Lading; Routing Freight Shipments; Freight Claims Railway Organization; Statistics of Freight Traffic; Railway Accounting Express and Parcel Post Ocean Traffic and Trade Government Control of Common Carriers Interpretation of the Act to Regulate Commerce Rulings of the Interstate Commerce Commission and Procedure before that body Business Law, I Business Law, II The Law of Carriers of Goods Practical Traffic Problems LASALLE EXTENSION UNIVERSITY THE ACT TO REGULATE COMMERCE AND SUPPLEMENTAL ACTS HERBERT C. LUST Of the Chicago Bar Co-Author, "Digest of Decisions Under the Interstate Commerce Act" % Ia^aile EkNSioN University (Home Study Under Expert Guidance) CHICAGO Copyright, 1915 LaSalle Extension University I »■ > «* i U^nko- CONTENTS m SECTION 1 Scope 5 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 Commodities clause 32 Switching connections 33 SECTION 2 Crimes 37 to 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: Railroad competition 50 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 0* Constitutionality of Section 4 69 ill iv CONTENTS Jurisdiction of Commission 60 Exceptions 60 Application of Section 4 to rates 62 Competition as justification 62 SECTION 5 Pooling of freight 65 Panama Canal Act: Water carriers 65 SECTION 6 1. 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 SECTION 14 Reports of 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 : Right to earn 107 Same subject: Change in conditions 108 Jurisdiction over through routes and joint rates 112 Establishment by carrier 115 Right to favor own line 116 What is satisfactory through route 118 Right to withdraw through routes 118 Obligation to furnish equipment 119 Legal rate 119 Jurisdiction over routing and misrouting: In general 120 Same subject: Carriers' duty to transport 120 Accustomed or natural route 121 Cheapest available route 121 Conflict in billing between rate and route 121 Shipper's instructions 122 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: Same subject: Same subject: Same subject: Same subject: Same subject: Same subject: Same subject: Same subject: Same subject: Same subject: Same subject: Same subject: Same subject: Same subject: Same subject: Same subject: Discrimination 130 Specific allowances 131 Legality of allowances 134 Plant facility 136 Allowances as rebates 138 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 paying tariff rate 147 Parties entitled to recover 148 Statute of Limitations 149 Method of obtaining reparation 149 Court pleadings 150 SECTION 16a Rehearings 152 SECTION 17 1. PROCEDURE 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 Office 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 INTRODUCTION 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 Railroad, 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 will 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 REGULATE 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 the 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. However, 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 Kouge, 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 sueh 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 the 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 1 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 1 /2 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 shown of any other undertaking or arrangement be- tween the rail carriers and the water carriers. It was x The term "protect" as here used means that the boat lines promised that the rate would not be higher than 45 cents. 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. 2 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. 3 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. 4 '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 traffic, 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. 5 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 Kailroad, 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 Railroad, in re- ceiving the cars at Bangor, advanced to the Bangor Railway & 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 denned by Section 1 of the Interstate Commerce Act, and that therefore the Bangor Railway & Electric Company was as to such shipments originally within the scope of the Act as amended by the Carmack Amendment and as •I. C. C. v. Goodrich Co., 224 U. S. 194, 211. SECTION 1 13 initial carrier was liable for the defaults of connecting carriers. The publication of proportional rates by rail carriers and a lake steamship company covering through inter- state transportation, the actual movement of traffic upon through bills 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. 7 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. 8 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, and 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 with 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. 9 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, 10 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. Ordinarily, 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." 11 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 10 ) 1. 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. 12 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 down 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; Covington, 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 the 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. Upon 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. 13 In State v. N. P. Ky Co., 14 the North Dakota Supreme Court said: "Wilcox v. Gas Co., 212 U. S. 19; 29 Sup. Ct. 148; 53 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?" Kailroads 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. 15 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 raw 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. 16 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. 17 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 the absence of a spe- cific commodity rate the class rate, that is, the rate dependent upon the classification, governs. In the 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. 18 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. 19 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. R. R. & N. Co., 59 Fed. 975, 979. "Nat'l Hay Ass'n v. M. C. R. R. 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. 20 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 he 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. 21 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. 22 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 "Forest City Freight Bureau v. Ann Arbor R. R. 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. 23 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. 24 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 discrimination, so that today, on the whole, coal cars are equitably distributed. During transportation the principal facilities that are used are transit, elevation, and compression. 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 which free transportation can be given by the 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 fined 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. 25 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 who uses the pass is not so excepted, the person who gives him the pass, even if he himself could use it, is liable. 26 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. 27 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. 28 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. 29 This clause was passed principally to attack the great coal-carrying and coal-owning roads of Pennsylvania, *U. S. v. Williams, 159 Fed. 310. r This Act is reproduced at the end of this treatise. 28 L. & N. R. R. Co. v. Mottley, 219 U. S. 467. "U. S. v. D. & H. Co., 213 U. S. 366. SECTION 1 33 such as the Beading, Lehigh Valley, Pennsylvania, and Lackawanna & Western. It has been estimated, for in- stance, that the Eeading 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. 30 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. ,0 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. 31 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 traffic 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. R. 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. 32 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. 33 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 R. 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 rig-lit 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 denned 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 REGULATE 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. 1 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. l U. S. v. C. I. & L. Ky. Co., 163 Fed. 114, 115. SECTION 3 1. Discrimination In general. — Section 3 provides that 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 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 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 south. 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 bevond 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 Bail- road Santa Rosa was on the main line, but on the South- ern Pacific Eailwav 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. 1 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 Rosa 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, 2 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 everv discrimina- w 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 awav is onlv served bv one railroad. Manifestlv, 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 TYalsenburg 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. 3 Typical problems of unjust discrimination have been con- sidered in the Cedar Hill coal case, 4 the Colorado Coal Traffic Association case, 5 and the Nebraska State Com- mission case. 6 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 must 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. 7 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. 8 Nebr. St. Ry. Com. v. C. B. & Q. R. R. Co., 23 I. C. C. 121. '16 I. C. C. 387. 6 19 I. C. C. 478. '13 ICC 349 T R. R. Coni'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 the 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. 8 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. & O. R. R. 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, differential 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. What 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 of 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. 9 Eates 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. & 0. R. R. Co., 16 I. C. C. 512, 517, 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. 10 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, New 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. Ry. Co., 22 I. C. C. 93, 100, 101. 48 THE ACT TO REGULATE COMMERCE ant rate. It was held that such rate was not unduly discriminatory against coal dealers at Point Pleasant. 11 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 R. 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. 12 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. 13 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 "Nat'l Petroleum Ass'n v. M. P. Ry. Co., 18 I. C. C. 593, 594. "Chamber of Commerce of Newport News v. S. Ry. Co., 23 I. C. C. 345, 353. 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. 14 Same subject: Railroad competition. — Kailroad 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. 15 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. 16 Under the "Advances in Rates — Eastern Case, 2 I. C. C. 243, 259. "Darling & Co. v. B. & 0. R. R. Co., 15 I. C. C. 235, 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. 17 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 "R. R. Com. of Nev. v. S. P. Co., 21 I. 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 discrimination 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 3 55 which 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 Eule 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 Rocky 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 River than they did to the so-called intermountain points, such as Reno, 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. 1 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. 2 *The description of these zones is given in detail in "Freight Rates Western Territory," Part 3. 'City of Spokane v. N. P. Ry. Co., 21 I. C. C. 400, 426, 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 Railway Co. v. U. S., 8 the court held that the Commission by its orders respecting the relation of rates from eastern points to Spokane, Reno, 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. 4 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. Ry. Co., 34 Sup. Ct. 986, 994, reversing 191 Fed. 856, enjoining the order of the Commission 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 the 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 intermediate 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. Even 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. 5 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 the Commission and re- jected. To state it briefly, the Commission has held 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 cannot 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 1 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 with agreements. 65 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 manner 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. At the present time the Commission is considering the applications from various carriers which own ships and desire to be relieved from the application of this law. Many of the great trunk lines in the country are owners of large fleets of boats. The only competitor of SECTION 5 67 the railroad is the water carrier. Therefore, the railroad, by owning the water carriers, can always be in a position to fight independent water lines and control the rates. The opening of the Panama Canal is the greatest menace that the transcontinental railroads have to face. It cuts the voyage around Cape Horn in two and shortens the distance on the way from New York to San Francisco by over three thousand miles. It is predicted that the Canal will cause the transcontinental rates to decrease 40 per cent. SECTION 6 1. Tariffs Jurisdiction of Commission. — Section 6 1 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 'Of ten 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. 2 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. 3 Rates 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. Rates 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. R. R. v. Mottley, 219 U. S. 467. 'U. 3. v. Miller, 228 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; if 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, 4 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 no 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. 5 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. R. R. Co. v. U. S., 212 U. S. 481. 72 THE ACT TO REGULATE COMMERCE for ascertaining the 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 in 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 consult Tariff Circular No. 18- A, which contains the Com- mission 's rules on the subject. 6 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 country 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 of Tarifff." 74 THE ACT TO REGULATE COMMERCE changes will go into 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 76 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. 7 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 COMMERCE 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 manner 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 such 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 which 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. 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 the 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 Railroad 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 Railroad Company were common carriers engaged in interstate 82 SECTION 10 83 commerce, the 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. 1 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 X U. S. v. Union Stock Yard & Transit Co., 83 Sup. Ct. 83, 89. •Armour Packing Co. v. U. S., 209 U. S. 56, 82; 28 Sup. Ct 428; 209 U. S. 90; 28 Sup. Ct. 489; 52 L. Ed. 698. 84 THE ACT TO REGULATE COMMERCE false billing, etc., obtain transportation for less than 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 commission 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, under 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 complaint 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 the 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 dnty 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-judicial 1 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- clared 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- Tartly 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 REGULATE 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 upon 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. 2 a A. T. & S. F. Ry. 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, so 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. 3 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. 4 "Mitchell Coal & Coke Co. v. Penn. R. R. 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. 5 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. 6 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 'American Sugar Refining Co. v. D. L. & W. Ry. Co., 200 Fed. 652, 654. •I. C. C. v. U. P. R. R. Co., 222 U. S. 541, 547; 32 Sup. Ct. 108; 56 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- merce 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. 7 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 7 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. 8 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 all 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. 9 Jurisdiction over procedure — Under Sections 12 and 15, as we have seen, the Commission 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. 10 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. 11 Jurisdiction over capitalization. — The Commission is without control over capitalization. It cannot place lim- 'Mitchell Coal & Coke Co. v. Penn. R. R. Co., 33 Sup. Ct. 916, 921 ; 230 U S 247 B 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. 12 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. 13 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- cumulated experience of its members, but may do so only upon a full 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 L C. C. 307, 334. "I. C. C. v. C. R. I. & P. Ry., 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 Commission 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. 14 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 commerce 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. Ry. 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. 15 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. 175, 176. 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 sum 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. 16 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 unloaded, 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, 528. 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 effect 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 mill, 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 will 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 advanced 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 constantly 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 proposed are just and reasonable. It does not stand as a supreme traffic manager for the railroads of the coun- 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 mainly upon the ground, not of commercial conditions, but of lack of ade- quate revenue, on the present rate basis, the Commission must determine the fundamental question of the reason- ableness of the rate and the adequacy of the carrier's revenues. 17 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 b}^ 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 Rates— Eastern Case, 20 I. C. C. 243, 248. 106 THE ACT TO REGULATE COMMERCE tied that the 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. 18 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 Rates— Western Case, 20 I. C. C. 307, 311, 314. SECTION 15 107 come insufficient, then higher rates should be permitted. Bates should be such as to render possible a high-class, not an extravagant, transportation service. 19 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. 20 The fact that other rates may be re- duced if the increases are not permitted affords no predi- cate that the present rates are unreasonably low. Perhaps the most common excuse urged for an advance in rates is that the advance will equalize related rates. Rates 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. 21 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- 19 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 the 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, taking 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 efficiency. 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 sets of causes work in opposite directions and tend to balance each other. It is not certain what the net result has been at any time in the past, or what it is today. It is not improbable 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 leave 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 ]3oints. 22 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. Railways 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. 23 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. 852, 558. "I. C. C. v. Chicago G. W. R. R. Co., 209 U. 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. 24 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. R. 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 case 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. 25 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. 26 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 Oil 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, 38. 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. 27 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. 28 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. R. 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 which purchases a branch-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. 29 "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. — " Railroads 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. 30 This rule does not apply, however, so as to charge the initial carrier with misrouting 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 instructions 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 particular 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 bill 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 willing 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 Ms 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 certain 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 accounts 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, although 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. 31 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. 32 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." 33 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. 82 Albree v. B. & M. R. R. Co., 22 I. C. C. 303, 321. "Federal Sugar Refining Co. v. B. & 0. 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. 34 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 otherwise result. Nevertheless, the Commission does favor the ex- istence of lower rates at ports put into effect by rail car- 84 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 tins 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. 35 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-American 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 railroads 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 performs a service in the transportation of his own 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 car- riers, 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 shipper 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 that 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 carrjdng 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 character. 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. 36 "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. 37 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. Merchants' Exchange v. C. B. & Q. R. R. Co., 22 I. C. C. 496, 503. 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. 38 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. R. R. 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 connected 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, what 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 compensation 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 13T 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 facility. 39 Complainant, General Electric Company of Schenec- tady, New York, filed a complaint against the New York Central & Hudson River Railroad 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 circumstances 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 R. R. Co., 17 I. C. C. 614, 518-520. 138 THE ACT TO REGULATE COMMERCE and could not be permitted to receive compensation therefor. 40 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 trunk 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 shown to be inconsistent with the laws of the state in which they are organized and operated, lumber being excepted from the commodities clause. 41 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. 42 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. R. R. R. Co., 14 I. C. C. 237, 242, 243 244 "U. S.'v. L. & P. Ry. Co., 234 U. S. 1. "U. S. v. Butler County R. R. 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. 43 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 built 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 calls 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. 44 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 B. R. Co. v. P. & B. B. 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 1 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. 2 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. 3 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. 4 The Commission is authorized to award reparation to any person or persons 2 See "Procedure Before the Interstate Commerce Commission." •Allen & Co. v. C. M. & St. P. Ry. Co., 16 I. C. C. 293, 295. 4 Swift & Co. v. C. & A. R. R. Co., 16 I. C. C. 426, 428. 'C 142 THE ACT TO REGULATE COMMERCE found to be damaged through a violation of the Act by any common carrier subject to its provisions. The 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. 5 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. 6 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 7 in bringing the complaint, at the same time grant- ing reparation on shipments made subsequent to the filing of the complaint. 8 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. 9 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. Ry. Co., 195 Fed. 12, 18. 7 A legal term meaning such an unreasonable delay in asserting an alleged right as should equitably debar the party. 8 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. C. C, 193 Fed. 682, 683. SECTION 16 14a the lawfully published schedule rate, and this without a determination on its part that the rate exacted is unrea- sonable. 10 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. 1X 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. R. 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. 12 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. 13 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. 14 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. 15 "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. 16 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. 17 Carriers are not entitled to resist an award of repara- tion for 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. 18 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. 19 "Nicola, Stone & Myers Co. v. L. & N. E. R. Co., 14 I. C. C. 199, 206. "Nicola, Stone & Myers Co. v. L. & N. R. R. Co., 14 I. C. C. 199, 205. "Burgess v. Transcontinental Freight Bur., 13 I. C. C. 668, 679, 680. "Mattison v. Penn. R. R. Co., 23 I. C. C. 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. 20 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 such commodity due to the negligence of a carrier in not obeying reconsignment in- structions, are not matters within 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. & O. R. R. Co., 21 I. C. C. 536, 538. SECTION 16 147 to delay in shipment caused by washouts 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, 21 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 COMMERCE Parties entitled to recover. — Unless reparation was claimed in the complaint upon which snch decision was based, or was awarded by the 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 the 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. 22 "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 within 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, 23 more than two years having elapsed between the delivery of the shipments and the institution of proceedings, the claims were barred. 24 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 Blinn Lumber Co. v. S. P. Co., 18 I. C. C. 430. "Blodgett Milling Co. v. C. I. & S. R. R. 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. 25 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. R. 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. 26 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. 27 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. 28 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 that 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, Kehearing. 152 SECTION 17 1. Procedtjke 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 Commission'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. 1 It is necessary for this body to have some kind of system ^hese rules will be found in "Procedure Before the Interstate Commerce Commission." 153 154 THE ACT TO KEGULATE 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. 2 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. 3 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 S U. S. Leather Co. v. S. Ry. Co., 21 I. C. C. 323, 324. 'Advances in Rates— Western Case, 20 I. C. C. 307, 315. 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 hear ; ng 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 all 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 all 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 permitting 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 with 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 intolerable if the change could be made re- troactive. 4 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 ; bnt 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. 1 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 1. Eeports 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 shall be made, and to require from such carriers specific answers to all 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 in 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. 1 1. C. C. v. Goodrich Co., 224 U. S. 194, 214; 32 Sup. Ct. 436; 56 L. Ed. 729. 164 THE ACT TO REGULATE COMMERCE Under Section 20 the Commission lias 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 bv 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 accounting 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. 2 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 Commerce 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 commerce. 3 Very often the accounting officers do not follow the strict rules of the Commission. It is important that this be done in order that uniform accounts 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 with 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 will 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. 4 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 wrecking of transportation agencies by those in posi- «R. R. 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 KEGULATE 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. 5 In a typical 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 carrier 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. Paul & 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. 6 2. The Caemack 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 rails 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 shall 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 shall 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. 9 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 resulted in considerable hardship. In 1906, therefore, Congress passed this section, known as the Carmack Amendment. This makes 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. 7 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. 8 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. 9 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. 10 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. 11 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. 12 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- 9 C. of Ga. Ry. Co. v. Sims, 169 Ala. 295, 301 ; 53 So. 826. 10 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 ship- 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. 13 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 while 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 B St. L. & S. F. R. R. Co. v. Heyser (Ark., 1910), 130 S. W. 562, 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. 14 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. 15 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. 16 Under the law it is a duty of shippers of property of more than ordinary value to bill 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 M 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. 16 M. K. & T. R. R. Co. v. Harriman Bros., 227 U. S. 657. 172 THE ACT TO REGULATE COMMERCE is precluded, in case of loss or damage, from denying the correctness of a value so given. 17 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 bills 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. 18 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. 19 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 makes no demand to ship under the common-law liability. 20 A bill of lading of an interstate shipment contained the condition that the amount of the loss or damage for "Express Rates, 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. "a 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. 21 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. 22 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. 23 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. 24 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. R. Co. (Mass., 1913), 102 N. E. 92, 94. 22 K. C. S. R. R. Co. v. Carl, 227 U. S. 639. "K. C. S. R. R. Co. v. Carl, 33 Sup. Ct. 391, 394; 227 U. S. 639. M M. K. & T. R. R. Co. v. Harriman Bros., 33 Sup. Ct. 397, 401 ; 227 U. S. 657. 174 THE ACT TO REGULATE 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. 25 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. 26 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. 27 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 2S Ore. R. & N. Co. v. Thisler (Kans., 1913), 133 P. 539, 539. M A. C. L. R. R. Co. v. Ward (Ala., 1912), 58 So. 677, 678. "St. L. & S. F. R. R. Co. v. Zickafoose (Okla., 1913), 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. 28 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. 29 "Joseph v. C. B. & Q. R. R. Co. (Mo., 1913), 157 S. W. 837, 838. 9 C. R. I. & G. Ry. Co. v. Linger (Tex., 1913), 166 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 Rates 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 5,000-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. 1 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 Tasses 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. 2 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 REGULATE COMMERCE susceptible of defense only upon the theory that the in- bound movements are, in fact, parts of a single continu- ous transaction. "While 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 ultimate 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. 3 'Reduced 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, alleging such violation by a common 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 similar conditions to any other shipper, to issue a writ or writs of man- damus 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 applying for the writ. 1 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 connec- 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 1 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. 'Temporary. 182 MISCELLANEOUS ACTS 183 2. Compulsory Testimony Act This act provides that no person shall be excnsed 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 offer, 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 having 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. Parcel 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. Boiler 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 boiler of such locomotive and appurtenances thereof are in proper con- dition 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 without unneces- sary peril to life or limb. 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 will 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 Commerce 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 car 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 Signal 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. 2 'Public Resolution, No. 46, approved June 30, 1906. 188 THE ACT TO REGULATE COMMERCE 9. Monthly Reports of Accidents Act This act provides that it is the duty of the general manager, superintendent, or other proper officer 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, equipment, or roadbed, arising from the opera- tion of such railroad under 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 of 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 all 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 should be written out, but 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 denned 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 provisions 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 with 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 publication 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 Commission 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 Commission 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 quite 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 a 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' accounts? 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 restriction 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 bill 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 ? Miscellaneous 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) ALSO DISTRICT COURT JURISDICTION ACT COMPULSORY TESTIMONY ACT IMMUNITY OF WITNESSES ACT ELKINS ACT EXPEDITING ACT CLAYTON ANTITRUST ACT (Sees. 2, 3, 7-11, 15-19, 26) GOVERNMENT-AIDED RAILROAD AND TELEGRAPH ACT LAKE ERIE AND OHIO RIVER SHIP CANAL ACT (Sec. 17) PARCEL POST ACT (Sec. 8) SAFETY APPLIANCES MONTHLY REPORTS OF ACCIDENTS MEDALS OF HONOR HOURS OF SERVICE ASH PAN TRANSPORTATION OF EXPLOSIVES BOILER INSPECTION BLOCK SIGNALS PUBLISHED BY THE INTERSTATE COMMERCE COMMISSION REVISED TO NOVEMBER 1, 1914 WASHINGTON GOVERNMENT PRINTING OFFICE 1914 CONTENTS (Showing 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 ap- proved 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 Statutes 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 Stat- utes at Large, 566), and by an act approved March 1, 1913 (37 Stat- utes at Large, 701) 7 An act in relation to testimony before the Interstate Commerce Commis- sion ; and in cases or proceedings under or connected with an act entitled an act to regulate commerce, and amendments thereto, approved February 11, 1S93 (27 Statutes at Large, 443) 54 An act defining the right of immunity of witnesses under the act entitled an act in relation to testimony before the Interstate Commerce 'Commis- sion, 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 com- merce with foreign nations and among the States, approved February 19, 1903, and an act entitled an act making appropriations for the legis- lative, 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) 55 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) __ 56 An act to expedite the hearing and determination of suits in equity pend- ing or hereafter brought under the act of July 2, 1890, entitled an act to protect trade and commerce against unlawful restraints and monopo- lies, an act to regulate commerce, or any other acts having a like pur- pose 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) 60 4 CONTENTS. Page. 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; ap- proved August 7, 1888 (25 Statutes at Large, 382) 78 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) 77 An act making appropriations for the service of the Post Office Depart- ment for the fiscal year endiug June 30. 1913. and for other purposes, approved August 24. 1912 (37 Statutes at Large. 558) 78 An act making appropriations to supply urgent deficiencies in appropria- tions for the fiscal year 1913, and for other purposes, approved October 22, 1913 (38 Statutes at Large, 219) 50 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. 27S) 46 An act making appropriations for sundry civil expenses of the Govern- ment 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 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 ap- proved April 1, 1896 (29 Statutes at Large, 85) 79 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) 81 An act to supplement an act to promote the safety of employees and trav- elers upon railroads by compelling common carriers engaged in inter- state commerce to equip their cars with automatic couplers and con- tinuous brakes, and their locomotives with driving-wheel brakes, and for other purposes, and other safety-appliance acts, and for other pur- poses, approved April 14, 1910 (36 Statutes at Large, 298) : also amend- ment of March 4. 1911 (36 Statutes at Large, 1397) 83 An act authorizing the Commission to employ safety-appliance inspectors, approved June 28, 1902 (32 Statutes at Large, 444) 86 An act requiring common carriers engaged in interstate and foreign com- merce to make full reports of all accidents to the Interstate Commerce Commission and authorizing investigations thereof by said Commission, approved May 6, 1910 (36 Statutes at Large, 350) 86 An act to promote the security of travel upon railroads engaged in inter- state commerce, and to encourage the saving of life, approved February 23, 1905 (33 Statutes at Large. 743), and' regulations prescribed there- under 88 An act to promote the safety of employees and travelers upon railroads by limiting the hours of service of employees thereon, approved March 4. 1907 (34 Statutes at Large, 1415) 90 CONTENTS. Page. An act to promote the safety of employees on railroads, approved May 30. 1908 (35 Statutes at Large, 476) 92 An act to promote the safe transportation in interstate commerce of ex- plosives and other dangerous articles, and to provide penalties for its violation, approved March 4, 1909 (35 Statutes at Large, 1134) 93 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 appurte- nances thereto, approved February 17, 1911 (36 Statutes at Large, 913) _ 95 An act making appropriations to supply urgent deficiencies in appropria- tions for the fiscal year 1913, and for other purposes, approved October 22, 1913 (38 Statutes at Large, 219) 101 An act to supplement existing laws against unlawful restraints and monopolies, and for other purposes, approved October 15, 1914 (38 Statutes at Large, 730) 62 Joint resolution directing the Interstate Commerce Commission to inves- tigate and report on block-signal systems and appliances for the auto- matic control of railway trains, approved June 30, 1906 (34 Statutes at Large, 838) 101 Index 103 THE ACT TO REGULATE COMMERCE AS AMENDED. Be it enacted by 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 ^^"Jj^^j June 18, 1910.) That the provisions of this Act shall ap- ^j?ject t0 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-^eiegraphu graph, telephone, and cable companies (whether wire orcaMe 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 w J t * l J^Sj. and 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 Act goe^* of this Act shall not apply to the transportation of pas- po^t au^n sengers or property, or to the receiving, delivering, stor- one state. 8 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. Express com- The term " common carrier " as used in this Act shall pan les and . . Bleeping car include express companies and sleeping car companies. companies in- x x . . , eluded. The term " railroad " as used in this Act shall include all What the ... term " rail- bridges and terries 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; what the and the term "transportation" shall include cars and portation" in- other 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 All charges made for any service rendered or to be be just and rea- . ° . „ ■onabie. rendered m 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 ser vices. And it is hereby made the duty of all common carriers ciassiflca- tions r g tfon to competi ' merce 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 nnai rders t0 be competition determined as herein provided. In all such cases the order of said Commission shall be final. au^horftyto'ai'- If the Interstate Commerce Commission shall be of the o°f W certIhi r ves^ opinion that any such existing specified service by water raiiroadsf by 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, water carriers J * ? tu b e „ fi ] e . d schedules, and practices of such water carrier shall be with Commis- , - r sion. filed with the Interstate Commerce Commission and shall be subject to the Act to regulate commerce and all 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 EEGULATE 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- Sh J^^ 01 ^ C °J eign trade of the United States shall be permitted to enter not to use 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. Am-ended June 18, 1910, and August 2^, 1912.) That every common 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 different 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 ^^f^l *■$ public inspection as aforesaid, the separately established s ^h e tales ot rates, fares and charges applied to the through trans- charges hiciu^- portation. The schedules printed as aforesaid by any regulations a*- such common carrier shall plainly state the places be-same,icing,stor- l J r age, and termi- tween which property and passengers will be carried, andn a 1 charges, shall contain the classification of freight in force, and classification*. 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 depots 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 o^ung a of Any common carrier subject to the provisions of this rateb e on U freight Act receiving freight in the United States to be carried ^foreign r c°o" n h through a foreign country to any place in the United 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; .iect to customs and any freight shipped from the United States through failure to pub- a foreign country into the United States the through rate rates. on which 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. pubiKotiraof ^° change shall be made in the rates, fares, and charges must ge bi n glven! or ]°i nt rates, fares, and charges which have been filed and published by any common carrier in 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 ACT TO REGULATE COMMEECE. ] 7 less than the notice herein specified, or modify the re " ma y°modify Si re n quirements of this section in respect to publishing, post- ^/^secnon ° f ing, and filing of tariffs, either in particular instances or by a general order applicable to special or peculiar cir- cumstances or conditions. The names of the several carriers which are parties to ^j™^ t^, 8 . any joint tariff shall be specified therein, and each of the £ ame . s s J^S: parties thereto, other than the one filing the same, shall ^£ g - of E c ^; 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 tl . ( ^ P t i | so a f g c r < ^; with said Commission copies -of all contracts, agreements, ™n n g e S me £[ s ££ or arrangements with other common carriers in relation ^^s ^g*™®^ to any traffic affected by the provisions of this Act to^* h Commis - which it may be a party. The Commission may determine and prescribe the f orm m f y^escrii.e in which the schedules required by this section to be kept f°™ s of 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 Bh J}i engage In engage or participate in the transportation of passengers un f£g%. to fl\°g or property, as defined in this Act, unless the rates, f ares, » n^ puw^hes 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, FuMished * . . rates to be fares, and charges which are specified in the tariff filed strictly ob- 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 "Carrier" " ' means com- word " carrier " occurs in this Act it shall be held to meanmon carrier." u common carrier." 66170°^-14 2 18 ACT TO REGULATE COMMERCE. Preference That in time of war or threatened war preference and and expedition r of militaryp recec l enc e shall, upon the demand of the President of traffic in time 1 . * of war. the United States, be given, over all other traffic, to the transportation of troops and material of war, and car- riers shall adopt every means within their control to facilitate and expedite the military traffic. The Commission may reject and refuse to file any o^j^n™ 6 is schedule that is tendered for filing which does not pro- 191 °- vide and give lawful notice of its effective date, and any com mission schedule so rejected by the Commission shall be void and id &y rcifict. certain sched-its use shall be unlawful. nlcs. 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 Penalty f o r carrier, receiver, or trustee shall be liable to a penalty of failure to com- ' * * ply with regu-five hundred dollars for each such offense, and twenty-five lation. 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, furalsh" ' e writ° ^ an y common carrier subject to the provisions of this of ?ate atement Ax ^ after 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- misstatement . ~ of rate. ment over a fine or route tor 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. rieV's agent to It shall be the duty of every carrier by railroad to keep po6 at all times conspicuously posted in every station where ACT TO REGULATE COMMERCE. 19 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 A ™® nd g™ e 24 fc point in the United States by rail and water through the 1912. 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- ha c s om jSS c n mission shall have jurisdiction of such transportation *nd water traf- and of the carriers, both by rail and by water, which may p£ rt jc ul ars. tain 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 n f^on °t>e- of the rail carrier and the dock of the water carrier by ^d en docL lm of directing the rail carrier to make suitable connection be- water 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 ma 5°tetermine the terms and conditions upon which these connecting J^ms^and con- tracks, when constructed, shall be operated, and it may, ^^n. aM 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 cases 20 ACT TO REGULATE COMMERCE. where the dock is owned by other parties than the car- rier involved. routes and ^ofnt ( D ) To establish through routes and maximum joint rlii es ana*wa e te? rates between and over such rail and water lines, and to determine all the terms and conditions under which such lines shall be operated in the handling of the traffic em- braced. rates° p to tl0 a n n a (j ( c ) To establish maximum proportional rates by rail from ports. tQ an( j frQm ^ portg tQ ^ich the tra ffi c fe brought, or . fi'om 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. routes andjofnt • (d) If any rail carrier subject to the Act to regulate ran and water commerce enters into arrangements with any water car- p a oV ie t rS in 0I therier operating from a port in the United States to a for- to m a foreign eign country, through the Panama Canal or otherwise, for Canai ry * a the handling of through business between interior points cf 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, before the Com- The orders of the Interstate Commerce Commission re- force these lating to this section shall only be made upon formal com- plaint or in proceedings instituted by the Commission of its own motion and after full hearing. The orders pro- vided 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- 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 ^ Carriage of fe ° x freights must of shipment to the place of destination, unless such break, be treated as L r . . . . ' continuous un- stoppage, or interruption was made m good faith tor Jess stoppage is llt5 ' r . -i in S° od faith. 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- Liability of jured therebv for the full amount of damages sustained riera for dam- p ■>•■>,■ j» ,i • • pages caused by in consequence of anv such violation ot the provisions oi violation of . this act this Act, together with a reasonable counsel or attorney's fee, to be fixed by the court in every case of recoverv. which attorney's fee shall be taxed and collected as part of the costs in the case. Sec. 9. That anv person or persons claiming to be dam- Persona , , ... , . . j. claiming to be aged bv anv common carrier subject to the provisions ot damaged may . j^t • g 1 g c t whcttid* this Act may either make complaint to the Commission as to complain to hereinafter provided for, or may bring suit in his or their sion or bring. own behalf for the recovery of the damages for which united 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 mav compel any director, officer, receiver, trus- officers of £ , . , j, , defendant may tee, or agent ot the corporation or company defendant be compelled to in such suit to attend, appear, and testify in such case, s h a 1 1 receive 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 '2:2 ACT TO REGULATE COMMEECE. or testimony shall not be used against such person on the trial of any criminal proceeding. Penalties for Sec. 10. (As amended March 2, 1889, and June 18, let bye arriers, 1910. ) That any common carrier subject to the provisions or when the » ,-. '■ . , , carrier is a or this Act, or, whenever such common carrier is a cor- officers 1 , tl a gents S poration, any director or officer thereof, or any receiver, F r ine eD and ye fm- trustee, lessee, agent, or person acting for or employed by pnsonment. suc } 1 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 anv 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. Penalties for Anv common carrier subject to the provisions of this false billing, . . , . etc., by car- Act. or, whenever such common carrier is a corporation. riers, their offi- „, ,, <. . . . cers or agents : any 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 KEGULATE COMMEECE. 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^^ff^ officer thereof, who shall deliver property for transporta- f e % a ^ B t h h iP r tion to any common carrier subject to the provisions of p^ 801 ^^ this Act, or for whom, as consignor or consignee, any ment - 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, roll, 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. indu°£g ie com r - -^ an y sucn P erson j or an y officer or agent of any such tod?scHminate cor P ora ^ on or company, shall, by payment of money or unjustly: Fme ther thine: of value, solicitation, or otherwise, induce or and imprison- to * liabfuV w'fth attempt to induce any common carrier subject to the pro- carrier for v i s i ons f this Act, or any of its officers or agents, to dis- damages. m . . . 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. c o'mm'eV^e Sec. 11. That a Commission is hereby created and es- ers— meufod of tablished to be known as the Interstate Commerce Com- £P^^{? m ment 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 two, 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 provisions of this Act, or owning stock or bonds thereof, or who is in any manner t 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 21>, enlarging Commission and increasing salaries.) Sec. 12. (As amended March 2, 1889, and February 10, to iSf into 1891.) That the Commission hereby created shall have S?^nd f k"p authority to inquire into the management of the business \^ elt re f gaTd of all common carriers subject to the provisions of this theret0 - Act, and shall keep itself informed as to the manner and method in which the same is conducted, and shall have to ^ mission the right to obtain from such common carriers full and |f f £f e of pr t ^/ 3 complete information necessary to enable the Commission Act - 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 J^g*}^: to whom the Commission may apply to institute in the £ u j£ l0 £ n *|, r f{- proper court and to prosecute under the direction of the torney 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- commission mission shall have power to require, by subpoena, the at- Jf^JJ^Jt * n * 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 co c m ° p u e l i tB wl t t ° such documentary evidence, may be required from any ° n f e ^ s °^ tend 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 '2* ACT TO REGULATE COMMEBCE. -aid Commission i 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 :^SU h ^3be pimished bv such court as a contempt thereof. The testimony or r - . r in ^ n ^3 claim that anv such testimonv or evidence mav tend to .t~i to crimi- nate win not criminate the person giving such evidence shall not excuse excuse witcr-- . 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. The 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 commission answer. The Commission mav also order testimonv to be may order tes- ... * . f . timony to be taken bv deposition in anv proceeding or investigation taken by depo- i- » *~_ • m * "~ . ntion. 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. is^n& fore^Q ^ a witness "«"hose testimony may be desired to be ""^ taken by deposition be in a foreign country, the deposition may be taken before an officer or person designated by the ACT TO EEGULATE COMMEBCE. 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 J^^I^J: Act. and the magistrate or other officer taking the same. i?rraTes shall severally be entitled to the same fees as are paid for like services in the courts of the United States. Sec-. 13. {A* amended June 18. 1910.) That any per- c Sgffiig son. firm, corporation, company, or association, or any^ow^in^ \ mercantile, agricultural, or manufacturing society or How 5f,rTed - 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 =aid 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 co mm on 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 Co ^^ 3i ^. rier or carriers shall not satisfv the complaint within the ^ i f'° *5 * TTlHTiTif^r OX time specified, or there shall appear to be any reasonable aestivation, 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- Commission may issue or- merce Commission shall have full authoritv and power dens" in invesn- . . {rations begun at any time to institute an inquiry, on its own motion, in on its own mo- anv case and as to anv matter or thinor concernincr 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 to in- 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. Xo complain- complaint shall at any time be dismissed because of the ants interest * -. ■* immaterial. absence ot direct damage to the complainant. Sec. 14. (Amended March 2, 1889, and June 29, 1906.) Commission That whenever an investigation shall be made by said must report, i» ...".,,, ". , stating its con- Commission, it shall be its dutv to make a report in writ- clusions and.. 7 1 • ■, " i order. mg in respect thereto, which shall state the conclusions of the Commission, together with its decision, order, or re- Reparation, quirement in the premises; and in case damages are awarded such report shall include the findings of fact on which the award is made. Reports must All reports of investigations made by the Commission be entered of ' ° J record, serv- shall be entered of record, and a copy thereof shall be fur- ice of copies on rj parties. nished to the party who may have complained, and to any common carrier that may have been complained of. decisfo°ns S to a be ^ ie Commission may provide for the publication of its published, and reports and decisions in such form and manner as mav be be competent- 1 as evidence, best 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. ports D of 1 com ! The Commission may also cause to be printed for early mission. distribution its annual reports. Sec. 15. (As amended June 29. 1906, and June 18, ma de™rmine^^^ That whenever, after full hearing upon a com- %£Lt and SC rea^ pl amt ' ma de as provided in section thirteen of this Act, or and ab d ssific eSa ^ r ^ lI ^ h earm g under an order for investigation and tions to be ob- hearing made bv the Commission on its own initiative served asmaxi- , . & . mum 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 EEGULATE 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 m ^ y ™ minion determine and prescribe what will be the just and reason- ? u ° t d p^"^ able individual or joint rate or rates, charge or charges, s ° na ^ e n g ^s^ to be thereafter observed in such case as the maximum to p ™ £ Mf , e A- ' ' ' II I HI 1 S S 1 o u be charged, and what individual or joint classification, ™ a y 01 ; der car - <=> j 7 riers to cease regulation, or practice is just, fair, and reasonable, to be and ^ e ^\ f ro ™ thereafter followed, and to make an order that the carrier f ° und - Orders of the Coin- or carriers shall cease and desist from such violation to™ 188 ' 011 effect- ive as pre- the extent to which the Commission finds the same tossed, but in not less 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 fo ° e r d n ei j s j£ orders of the Commission, except orders for the payment y| a e r d ' n ^ n i^g of monev, shall take effect within such reasonable time, suspended or J - ' set aside by not less than thirty days, and shall continue in force for ^™.f ission or 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 j urisdiction. Whenever the carrier or carriers, r j ^ g e f aii ca to in obedience to such order of the Commission or other- a F e c e ° n 5S*; wise, in respect to joint rates, fares, or charges, shall fail j;ate, ^commis- to agree among themselves upon the apportionment or 8 £nbe P ro g P°£ division thereof the Commission may, after hearing, ra . te , to . be re / J ' t °' ceived by each 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 investigation J of new sched- schedule stating a new individual or joint rate, fare, or^es. 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 Commission thereon the Commission upon filing with such schedule new schedules. 30 ACT TO REGULATE 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 L°^wi s L°2 become effective: Provided. That if any such hearing can ni3.y extend ' ** o suspension. no £ k e concluded 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 rd on caT-t ner period not exceeding six months. At any hearing sonabieness re ofi nv °l vm fe a ra * e 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. Commission j^g Commission may also, after hearing, on a com- may establish ■» »' and°"oint ?ates P^ am ^ or upon its own initiative without complaint, an d ciassifica- establish through routes and joint classifications, and tions. ... 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. 3l portation is wholly by water, and any transportation by water affected by this Act shall be subject to the laws and regulations applicable to transportation by water. And in establishing such through route, the Commission oq L im uation shall not require any company, without its consent, to P^ e u | h c r ^ s e embrace in such route substantially less than the entire length of its raikoad 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 shippers may ., , , • i • £ designate rout- to any railroad corporation being a common carrier, tor ing. 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 shall 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 line 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 instructions in said bill of lading: Provided, hoicever, That the shipper shall in all 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 gjyjJ^SJdJj? the provisions of this Act, or any officer, agent, or em- JSiaTetosi?? 1 - ployee of such common carrier, or for any other person or ments. corporation lawfully authorized by such common car- 32 ACT TO EEGTJLATE COMMERCE. 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- Exceptions. 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. Penalty. 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. Commission jf the owner of property transported under this Act nay deter l l j tr mi n e reason directly or indirectly renders any service connected with able maximum J J J — t to be paid for such transportation, or furnishes any instrumentality service r e n- . dered or in- lise d therein, the charge and allowance therefor shall be Btrumentality . . furnished by 110 m0 re than is iust and reasonable, and the Commission owner of prop * erty trans-n^ 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, of B powers ° in The foregoing enumeration of powers shall not exclude Sclnrive?" ° ot an y power which the Commission would otherwise have ACT TO KEGTJLATE COMMEECE. 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,, Award « f 7 ~ t i damages by 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 which he is entitled on or before a day named. If a carrier does not comply with an order for the pay- To be en- 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 oircuit 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 Findings of the United States shall proceed in all respects like other mission' pS civil suits for damages, except that on the trial of such £ CI %eparat?on suit the findings and order of the Commission shall be cases * 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 Petitioner's" petitioner shall finally prevail he shall be allowed a rea- att0rney ' 8 fee8 ' 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 Limitation the payment of money shall be filed in the circuit court or state court within one year from the date. of the order, and not after. In such suits all parties in whose favor the Commission .. J oint P laln " . _ * tiffs may sue may have made an award for damages by a single order J' 01 ?* . defen d- i • i i*i* /v> t finis id courts may be joined as plaintiffs, and all of the carriers parties ° n m awards of 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- 66170°— 14 3 34 ACT TO REGULATE COMMERCE. tain such suit against any one of such joint defendants; process! lce ° f and ^^i 06 °* 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. orfe!- r of lc com f 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. may^usSnd The Commission shall be authorized to suspend or or^ modify or- modify its orders upon such notice and in such manner as it shall deem proper, t h°e a i r r agents It slia11 be the dutv of every common carrier, its agents mi sT P com e P ?y and employees, to observe and comply with such orders with such or- so long as the same shall remain in effect. aers. a b/ U f n orS?e y carrier, any officer, representative, or agent of a obe re order of cari "i er > or an y receiver, trustee, lessee, or agent of either commission of them, who knowinglv fails or neglects to obev anv under section , ' ° " => J J 3 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. payable* Vnto Tlie forfeiture provided for in this Act shall be payable Treasury and into the Treasurv of the United States, and shall be re- recoverable in ,,.."... civil suit. coverable 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 ut attorn d eys Jt shaI1 be the dut y of the various district attorneys, to prosecute. un( j er the direction of the Attorney General of the ' United States, to prosecute for the recovery of forfei- expenfes "be tures ' The i • .,, less so ordered cation shall excuse any carrier from complying with or by commission. obeying 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 anj' - respect unjust or unwarranted, the Commission commission ma y reverse, change, or modifv the same accordingly. may, on rehear- . . ing, reverse, ^ny decision, order, or requirement made after such re- change, or j # 7 . ' m * modify order, hearing, reversing, changing, or modifying the original determination shall be subject to the same provisions as an original order. ma C y Ttermme Sec - lT - ( As amended March 0, 1889.) That the Com- cedure Vn pr °" m i ss i° n ma y 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 Parties may United States. Any partv may appear before said Corn- appear m per- t - . son or by at- mission and be heard, in person or bv attorney. Every torney. . . . vote and official act of the Commission shall be entered of record, and its proceedings shall be public upon the re- otficiai 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 subpoenas. 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, 34 Stat. L., 131L 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 Ccmmission may hire suitable offices for its use, and shall have authority to procure all necessary office supplies. Witnesses summoned before the Commission witnesses' 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 fiC g ^^wash- shall be in the city of Washington, where its general ses- ington. sions shall be held: but whenever the convenience of the,, sessions of > theCommis- public or the parties may be promoted, or delay or ex- sion - pense prevented thereby, the Commission may hold spe- cial sessions in any part of the United States. It may, by ma y 0m r ™slcu°te one or more of the Commissioners, prosecute any inquiry n ! £ u j. r ni es by , necessary to its duties, in any part of the United States,^ 3 m |™ b of S tn n into, any matter or question of fact pertaining to the busi- United states. ness of any common carrier subject to the provisions of this Act. Sec. 19a. That the Commission shall, as hereinafter of A Ml?JT°! provided, investigate, ascertain, and report the vakie of 1913 - all the property owned or used by every common carrier subject to the provisions of this Act. To enable the Com- bycommfsfiom 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 classification • • i t ii t /» and inventory. make an inventory which shall list the property or 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 ei . t y OS U sed Pr for ascertain and report in detail as to each piece of property £°m ™on^car- owned or used by said common carrier for its 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- other prop-ences, if any. The Commission shall in like manner as- ertv. certain and report separately other values, and elements of value, if any, of the property of such common carrier r 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. value of real 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. Property held Third. Such investigation and report shall show sepa- for other than 5= -i i i common-car- rately the propertv held for purposes other than those of rier purposes. ^ • -, •> . . , a common carrier, and the origmal cost and present value of the same, together with an analysis of the methods of valuation employed. corporate or- Fourth. In ascertaining the original cost to date of ganization. ° # 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° ks a D d 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- Earnings and p ense thereof: and upon the net and gross earnings of expenditures. x / . x ° # ° 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, un^ted^tates™ 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 any State, county, or municipal government, or by individuals, associations, ACT TO EEGULATE COMMERCE. 39 or corporations : and it shall also ascertain and report the value of land „ , . grants. 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- qired and at the present time, also, the amount and value concessions ^ r ' made by car- of any concession and allowance made by such common "er. 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 ^^^ of 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, classified and in detail as herein required. Such investigation shall be commenced within sixty n ^ r £ e sec r u t tion . days after the approval of this Act and shall be prose- investigation. cuted 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 ai Docu ] m r | n t i ? ^° Act shall furnish to the Commission or its agents from tion - 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 Access of . . . agents to prop- access to its right of way, its property, and its accounts, erty. 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, rul ^ g f f e c * of 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 REGULATE COMMERCE. tion of Records mission, with the reasons therefor, the records and data of the Commission shall be open to the inspection and exami- nation of the public. valuation of Upon the completion of the valuation herein provided extensions and *- m * * improvements, for the 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, Reports to which valuations, both original and corrected, shall be tentative valuations and shall be reported to Congress at the beginning of each regular session. information To enable the Commission to make such changes and required of car- ... . „ - riers. 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. Notice of "Whenever the Commission shall have completed the completion of r tentative vaiu- 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 governor 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 Finality if no protest of the same with the Commission. If no protest protest filed. . is filed within thirty days, said^ valuation shall become final as of the date thereof. Hearings of if notice of protest is filed the Commission shall fix a protests. _ * 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. any 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 date thereof. All final valuations by the Commission and classification 1 ! the 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 d enfe Ct ° f evl ' fixed by the Commission, evidence shall be introduced regarding such value which is found by the court to be different from that offered upon the hearing before the Commission, or additional thereto and substantially affecting said value, the court, before proceeding to render to T ™^ s ™ i s s 8 B i i °» 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 Co £^ s °ion.* f 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, of ^^ cation 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 or gff^ e ° n by the Commission, judgment shall be rendered upon such original order. The provisions of this section shall apply to receivers re £?P|j£ able t0 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 Penalty. . 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. "to" That the district courts of the United States shall have of ^Jfjfrlct jurisdiction, upon the application of the Attorney General ££" compliance' of the United States at the request of the Commission, 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 Avith the provisions of. this section, tai ^cT'of 1 au- It shall be the duty of every common carrier by rail- gust 1, 1914. roa( j vvhose 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 plvysical 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, m Jy^q Sire Sec - 20 - ( As amended June 29, 1906, February 25, 1909, and U P al r escribe* and June 18 i 1910 -) Tnat tne Commission is hereby au- in| th s°a d m°e f mak " thorized to require annual reports from all common car- riers subject to the provisions of this Act, and from the owners of all railroads engaged in interstate commerce as defined 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 of carriers snan 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 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 equip- ments; the number of employees and the salaries paid each class ; the amounts expended for improvements each year, how expended, and the character of such improve- ACT TO REGULATE COMMERCE. 43 merits; the earnings and receipts from each 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 m fy Ascribe shall also contain such information in relation to rates or of ni accou S nt S s tem 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 Annual re- statistics for the period of twelve months ending on the with commis- thirtieth day of June in each year, or on the thirty-first tember 30 of day of December in each year if the Commission by order eac yeai ' 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 Commission „ . p . J . may grant ad- Commission; and 11 any carrier, person, or corporation ditionai time, 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 daj^s 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 Monthly or . . . p periodical re- special orders to require said carriers, or any of them, to ports, 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 EEGULATE COMMERCE. forfeitures^ ° f Said forfeitures shall be recovered in the manner pro vided for the recovery of forfeitures under the provisions of this Act. niPaV 1 reports! The oat ^ squired by this section may be taken before how taken. an y person authorized to administer an oath by the laws of the State in which the same is taken. may prescribe The Commission may, in its discretion, prescribe the counts, records, forms of any and all accounts, records, and memoranda to raDda.and e ha^e^ e kept by 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 carrier to carriers subject to this Act, and it shall be unlawful for keep no other , . . ' accounts than such carriers to keep any other accounts, records, or mem- J- fi n 5 A T") I* P- scribed by Com- oranda than those prescribed or approved by the Com- mission. • -< •, i • , mission, and it may employ special agents or examiners, Commission who shall have authority under the order of the Commis- speciai exam- sion to inspect and examine any and all accounts, records, spect accounts and memoranda kept by such carriers. This provision shall apply to receivers of carriers and operating trustees. Punishment In case of failure or refusal on the part of any such of carrier by r " forfeiture for carrier, receiver, or trustee to keep such accounts, records, failure to keep , n , , . ■*■ . accounts tor and memoranda on the books and in the manner pre- scribed by com- scribed by the Commission, or to submit such accounts, mission or to n •• -> , , .-, . ,. « allow inspec- records, and memoranda as are kept to the inspection of ereo . ^ e 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. Punishment Any person who shall willfully make any false entry in of person for , » tip • % false entry in the accounts oi any book of accounts or in any record or accounts or rec- i i i • n -n* ords, or muti- memoranda kept by a carrier, or who shall willfully de- counts or rec- stroy, mutilate, alter, or by any other means or device keeping other falsify the record of any such account, record, or memo- thTse 8 pre 1 randa, or who shall willfully neglect or fail to make full, or" imprison^ true, and correct entries in such accounts, records, or ment or both, memoranda f a ll 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 EEGULATE COMMEKCE. 45 one year nor more than three years, or both such fine and imprisonment : Provided, That the Commission may in its of ^ r e u °^|^ discretion issue orders specifying such operating, account- 19 £ 9 - mmissi(m ins:, or financial papers, records, books, blanks, tickets, may permit de- te' r r ■-,.-, ,11, struction of 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 p S pecfa\ me ex < : which may come to his knowledge during the course of ^gSMJrma- such examination, except in so far as he may be directed JftorTty.^Se by the Commission or by a court or judge thereof, shall mentor both n " be subject, upon conviction in any court of the United States of competent jurisdiction, to a fine of not more than fike thousand dollars or imprisonment for a term not exceeding two years, or both. That the circuit and district courts of the United States c0 ^ n t s te m! y at i e s S shall have jurisdiction, upon the application of the Attor- ?2 e co Tp°i a con\ s ney General of the United States at the request of the Pj lai }£f * ! of Commission, alleging a failure to comply with or a viola- Act. 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 ma y°fm pToy said Acts, or any of them, the Commission is hereby au- ^f 1 t o Xa r ™- thorized to employ special agents or examiners who shall ceive evidence. have power to administer oaths, examine witnesses, and receive evidence. That any common carrier, railroad, or transportation rl ^ al 2JwB "for company receiving property for transportation from a loss o^damage point in one State to a point in another State shall issue a shipments. receipt or bill of lading therefor and shall 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 prop- erty may be delivered or over whose line or lines such property may pass, and no contract, receipt, rule, or regu- lation shall exempt such common carrier, railroad, or transportation company from the liability hereby im- posed: Provided, That nothing in this section shall de- ae^eTf^ting prive any holder of such receipt or bill of lading of any law not barred, remedy or right of action which he has under existing law. That the common carrier, railroad, or transportation m I a n y iti n I av i | rr r e r company issuing. such receipt or bill of lading shall be course upo^n entitled to recover from the common carrier, railroad, or sibie for loss 7 , or damage. transportation company on whose line the loss, damage, or injury shall have been sustained the amount of such 46 ACT TO EEGULATE COMMERCE. 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, of January 1 20! ^° su ^ brought in any State court of competent juris- 1914. diction against a railroad company, or other corporation, 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 ten, shall be removed to any court of the United States where the matter in controversj^ does not exceed, exclu- sive of interest and costs, the sum or value of $3,000. p£t™ot l the Sec. 21. (.4s amended March 2, 1889.) That the Com- coifjress! 011 t0 mission shall, on or before the first day of December in each year, make a report, which 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. ro e ert° ns that ^ EC * 22 ' (^ s amen d e d March 2, 1889, and February 8, may be carried 1895.) [See section 1, 5th par.~] That nothing in this Act duced rates, shall prevent the carriage, storage, or handling of prop- erty 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 transported by charitable societies, and the necessary Mileage, ex- agents employed in such transportation, or the issuance cursion.or com- ~ •<■ . . . mutation pas- of mileage, excursion, or commutation passenger tickets; ' nothing in this Act shall be construed to prohibit any common carrier from giving reduced rates to ministers of religion, or to municipal governments for the trans- portation of indigent persons, or to inmates of the Na- tional 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 after discharge, under arrangements with the boards of ACT TO KEGULATE COMMERCE. 47 managers of said homes ; nothing in this Act shall be con- trSFtSLmgai strued to prevent railroads from giving free carriage to g*f n „S °J^_ their own officers and employees, or to prevent the princi- Payees of ^ pal officers of any railroad company or companies from mes. exchanging passes or tickets with other railroad com- panies for their officers and employees ; and nothing in A ^nta B £ this Act contained shall in any way abridge or alter the JjJjyStgSS remedies now existing at common law or by statute, but l?™%™ u \f™; the provisions of this Act are in addition to such reme- gon^ not ^af- dies : Provided, That no pending litigation shall in any way be affected by this Act : Provided further, That noth- c ^^g ^Me ing in this Act shall prevent the issuance of joint inter- jj[f e - *|?2?g?ti changeable five-thousand-mile tickets, with special privi- ^° u g of f ree leges as to the amount of free baggage that may be carried under mileage tickets of one 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 privileges, as aforesaid, it shall file with the Interstate Commerce Commission copies of the joint tariffs of rates, fares, or charges on which such joint interchangeable mileage tickets are to be based, together with specifications of the amount of free bag- gage 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 six of this Act; and all the provisions of said section six relating to joint rates, gf^tgjj^ fares, and charges shall be observed by said common car- and observed. riers and enforced by the Interstate Commerce Commis- sion as fully with regard to such joint interchangeable 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 au- thorized to be issued any such joint interchangeable mile- age tickets to demand, collect, or receive from any person or persons a greater or less compensation for transporta- tion of persons or baggage under such joint interchange- able 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. The provisions of section ten of this Act Penalties, shall apply to any violation of the requirements of this proviso. Sec. 23. (Added M arch 2, 1889.) That the circuit and C oSJsio St com S district courts of the United States shall have jurisdiction "enf o? ?nfcfr- upon the relation of any person or persons, firm, or corpo- the te furn^hing ration, alleging such violation by a common carrier, of otfner transport any of the provisions of the Act to which this is a supple- tfes! on fa ° Ul 48 ACT TO REGULATE COMMERCE. ment and all 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 as those given by said 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 peremptoiy 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- Remedy is ing the determination of the question of fact: Provided. cumulative. ° * ' 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 C ?£i"sf i0 of Sec - 24< {Added June 29, 1906.) That the Interstate be/s e - n terms n: C' ommerce Commission is hereby enlarged so as to consist salaries. f se ven members with terms of seven years, and each shall receive ten thousand dollars compensation annually. o?commissk>n S The qualifications of the Commissioners and the manner ers - of the payment of their salaries shall be as already pro- vided by law. Such enlargement of the Commission 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, nine- teen hundred and twelve. The terms of the present Com- missioners, 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 provided by law. Their successors and the successors of the additional Commissioners herein provided for shall be appointed for the full terms of seven years, except that any person ap- pointed to fill a vacancy shall be appointed only for the unexpired term of the Commissioner whom he shall suc- ceed. Not more than four Commissioners shall be ap- pointed from the same political party. causes in com ' ACT TO REGULATE COMMERCE. 49 (Additional provisions in Act of June 29, 1906.) (Sec. J^^j^bmA- 9.) That all existing laws relating to the attendance of ance of , wit ° _ p • i ti nesses and pro- witnesses and the production of evidence and the com- auction of evi- ...„.,.. , deuce applica- pelling or testimony under the Act to regulate commerce bie in proceed- and all Acts amendatory thereof shall apply to any and Act. all proceedings and hearings under this Act. (Sec. 10.) That all laws and parts of laws in conflict la^^aiedf with the provisions of this Act are hereby repealed ; but the amendments herein provided for shall not affect causes no 1^to Effect now pending in courts of the United States, but such Pf^JJft 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 force fe £l£? Act ef " from and after its passage. Joint resolution of June 30, 1906, provides: "That the ^^"f *g: Act entitled 'An Act to amend an Act entitled "An Act to t e , Sded ™$*J* (A u g u s t J8, regulate Commerce,' approved February 4, 1887, and all 1906). 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. d C a ™}*[™"* 6, par. 2.) It shall be the duty of every common carrier a g e n t s in subject to the provisions of this Act, within sixty days for purposes 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 service on » * • i i • sucu agents. 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 Jby 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 Pending 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, proceedings, 66170°— 14 4 cases. 50 DISTRICT COUET JURISDICTION ACT. or matters now pending before it, the Commission may exercise any of the powers hereby conferred upon it, as would be proper in cases, proceedings, or matters here- after initiated and nothing in this Act contained shall bi fisting iia- operate to release or affect any obligation, liability, pen- alty, or forfeiture heretofore existing against or incurred by any person, corporation, or association. fec«TC° AuS ( Sec. 18. ) That this Act shall take effect and be in force 17, 1910). f r0 m 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; and Public, No. 161, ap- proved August 1, 1914. 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. * * * * * 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,' approved February fourth, eighteen hundred and eighty-seven, as heretofore amended, and for other purposes," approved Commerce June eighteenth, nineteen hundred and ten, is abolished ished. 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 sev- eral district courts of the United States, and all Acts or parts of Acts in so far as they relate to the establishment of the Commerce Court are repealed. Nothing herein con- tained shall be deemed to affect the tenure of any of the judges now acting as circuit judges by appointment under the terms of said Act, but such judges shall continue to act under assignment, as in the said Act provided, as in J d i Ift ri'c t Judges °f ^ ie district courts and circuit courts of appeals ; courts. an( j m the event of and on the death, resignation, or re- Tenure of of- moval from office of any of such judges, his office is hereby abolished and no successor to him shall be appointed. DISTRICT COURT JURISDICTION ACT. 51 The venue of any suit hereafter brought to enforce, sui \ s e on U orde°rf suspend, or set aside, in whole or in part, any order of commerce S com e the Interstate Commerce Commission shall be in the judi- mission. 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- Principal of- ing office. In case such transportation relates to a through shipment the term " destination " shall be construed as meaning final destination of such shipment. The procedure in the district courts in respect to cases Procedure in , x * district courts. 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, interlocutory 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 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 Notice. the Interstate Commerce Commission, to the Attorney General of the United States, and to such other persons 52 DISTRICT COUET JURISDICTION ACT. 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 Temporary 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 submitted to the judges making the order and identified dama r e parable ' 3 y 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. ^ n a pp ea i mav b e 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- ment nal judg ' P ea ^ sna ^ a PPlj- -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 ^ cases pend- a nd upon the attorney general of the State. All cases 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 DISTRICT COURT JURISDICTION ACT. 53 final decree and th'e 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, t0 T aTs S t e r Tcft 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* district 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 Conciliation. Any case hereafter remanded from the Supreme Court court P to which, but for the passage of this Act, would have been mand - 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 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. Supreme re- 54 COMPULSORY TESTIMONY ACT. Repeal. AW laws or parts of laws inconsistent with the forego- ing 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 Com- merce Commission, and in cases or proceedings under or con- nected with an Act entitled "An Act to regulate commerce." approved February fourth, eighteen hundred and eighty-seven, and amendments thereto. Be it enacted by tlie Senate and House of Representa- tives of the United States of America in Congress as- be excused sembled, That no person shall be excused from attending by fear of in- and testifying or from producing books, papers, tariffs, contracts, agreements and documents before the Inter- state Commerce Commission, or in obedience to the sub- poena 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," approved February fourth, eighteen hundred and eighty- seven, or of amy 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 or immunity. SUD ject 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: Pro- be P punlshed nay vided. That no person so testifying shall be exempt from prosecution and punishment for perjury committed in so testifying, pfn "^"iml Any person who shall neglect or refuse to attend and both 0nmeIlt ' or 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- poena or lawful requirement of the Commission shall be guilty of an offense and upon conviction thereof by a IMMUNITY OF WITNESSES ACT. 55 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, IMMUNITY 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-thijee, 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 legis- lative, executive, and judicial expenses of the Govern- ment for the fiscal year ending June thirtieth, nineteen hundred and four, and for other purposes," approved Februarv twenty-fifth, nineteen hundred and three, im- immunity ex- •i. i_ ii _l j i x i i • tends onlv to munity shall extend only to a natural person who, m natural persons , ,. , . . , ,. who give testi- obedience to a subpoena, gives testimony under oath ormony under produces evidence, documentary or otherwise, under oath, under oath. Public, No. 389, approved June 30, 1906. 5fi 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 the United States of America in Congress assem- aB C weTC at oflE Wed, Sec. 1. (As amended June 29, 1906.) That any name 01 asent 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. an( j T1 p n 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 Failure of herein changed. The willful failure upon the part of any carrier to pub- ... . _, . J; lish rates or carrier subiect to said Acts to file and publish the tariffs observe tariffs . '■ a misdemeanor, or 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 Misdemeanor dollars for each offense : and it shall be unlawful for any to offer, grant, . , •* give, solicit, ac- person, persons, or corporation to offer, grant, or give, cept, or receive r -, . . . :&>'_&> any rebate, con- or to solicit, accept, or receive anv rebate, concession, or cession or dis- ...... • . crimination, 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 bv a fine of not less or imprison- . ment, or both, than one thousand dollars nor more than twenty thousand dollars: Provided, That any person, or any officer or di- ELKINS ACT. 57 rector of aity corporation subject to the provisions of 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 Prosecutions J may be in any shall be prosecuted in any court of the United States d , * s * r l . J * * m , J through which having -jurisdiction of crimes within the district in which transportation e J _ passes. 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 li r '\ inc 'P alsa ': e section, the act, omission, or failure of any officer, agent, of 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 Rates filed or r •* participated in the Interstate Commerce Commission or publishes a par- *>y carrier shall, x L as against such ticular rate under the provisions of the Act to regulate c a r ri e r , be x ° deemed legal. 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, corporation, 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 58 ELKINS ACT. money or any other valuable consideration as a rebate or offset against the regular charges for transportation of such property, as fixed by the schedules of rates provided Forfeiture for in this Act, shall in addition to any penalty pro- may be en- , m J r J x forced against vided by this Act forfeit to the United States a sum of receivers of re- ^ batea 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. es^ed S °fn ^mat- Sec. -• That in any proceeding for the enforcement of in ca S ses n before * ne provisions of the statutes relating to interstate com- c n o t mm S erce merce ' whether such proceedings be instituted before the drcuTt^c'ou r°t Interstate Commerce Commission or be begun originally may be made i n anv circuit court of the United States, it shall be law- parties and J feet' to be 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 Sec. 3. That whenever the Interstate Commerce Corn- restrain depar- . . tures from pub- mission shall have reasonable ground for belief that anv lished rates or . . ° J any discrimi- common carrier is engaged in the carriage of passengrers nation prohib- , . „ . . •,, ited by law. or 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 ELK1NS ACT. 59 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 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 bjr 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. An in proceedings Court may ^ t • i compel attend- Under this Act and the Acts to regulate commerce the said ance and testi- , , mony of wit- courts shall have the power to compel the attendance of nesses and pro- i pi • ii . duction of witnesses, both upon the part or the carrier and the ship- fcooks and pa- 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 the shipper, which relate directly or indi- rectly to such transaction ; the claim that such testimony immunity. 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 papers, but no 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- 60 EXPEDITING ACT. \cf o^Fet^iT ^ ence documentary or otherwise in such proceeding: Pro- to°ekseB p£fif- «*<&*i Tnat tlle provisions of an Act entitled ''An Act to ^ted under di- expedite the hearing and determination of suits in equity torney General pending or hereafter brought under the Act of July in name ot In- r * fa & v j terstate Com- second, eighteen hundred and ninety, entitled 'An Act to meree Commis- ° J 7 8ion - protect trade and commerce against unlawful restraints 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, conflicting Sec. 1. That all Acts and parts of Acts in conflict with law* repealed. .. . , . . . . i -. i i the provisions or W\\< Act are hereby repealed, but such repeal shall not affect 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. Jf.6, herein. ) EXPEDITING ACT. AX 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 Representa- 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 EXPEDITING ACT. 61 and eighty-seven, or any other Acts having a like pur- pose that hereafter may be enacted, wherein the United States is complainant, the Attorney General may file with Genera! r £iy the clerk of such court a certificate that, in his opinion, flle certiflcate - the case is of general public importance, a copy of which shall be immediately furnished by such clerk to each of 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 f o ^ arl t n g r ^ c e than three of the circuit judges of said court, if there be JudgeB - 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 the 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 immediatelv certify that fact to the Chief Justice Chief Justice * J . to designate of the United States, who shall at once designate and circuit judge • ^^ in n o q p of appoint some circuit judge to sit with said judges and to equal 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- Appeal to su- 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 62 CLAYTON ANTITBUSI ACT. only to the Supreme Court and must be taken within sixty Exception- °modify 'i°° ms P ec ^i° n : Provided, That the Interstate Commerce qunements. Commission may, in its discretion and for good cause shown, allow changes upon less notice than herein speci- fied or modify the foregoing requirements in respect to publishing and posting of such schedules, either in par- ticular instances or by a general order applicable to spe- cial 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.) * * * * * tii C c 0n commi°s f ^he classification of articles mailable as well as the rn f '"ones! a etc.! we, 'g nt limit, the rates of postage, zone or zones and other in 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. * * * * * Public, No. 336, approved August 24, 1912. SAFETY APPLIANCE ACTS. 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 Representa- tives of the United States of America in Congress assem- bled, That from and after the first day of January, Driving- eighteen hundred and ninety-eight, it shall be unlawful brakes* 1 " 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 driv- 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, Automatic 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 cars. Sec. 3. That when any person, firm, company, or cor- when carri- poration engaged in interstate commerce by railroad shall fuiiy "refuse to , . -, _m-i i .e-i. a receive cars have equipped a sufficient number ot its cars so as to com- f r0 m connect- ply with the provisions of section one of this Act, it may shippers. 6 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, Grab irons eighteen hundred and ninety -five, until otherwise ordered ai 79 r 80 SAFETY APPLIANCE ACTS. by the Interstate Commerce Commission, it shall be un- 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, v - S w a ?^ ard Sec. 5. That within ninety days from the passage of height of draw- # r & bars forfreight this Act the American Railway Association is authorized cars. hereby to designate to the Interstate Commerce Commis- sion the standard height of drawbars for freight car?, 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- te X act ptions t0 ti° ns as ma T 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. 81 standard logging cars 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 cars or locomotives are exclusively used for the transportation of logs. Sec. 7. That the Interstate Commerce Commission may power of in- t"^rst"3tf* Com* from time to time upon full hearing and for good cause merce commis- extend the period within which any common carrier shall time of cani- comply with the provisions of this Act. with this act. Sec. 8. That any employee of any such common carrier ^Em ^pjoyees who may be injured by any locomotive : car, or train in ^^rjsk of 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. Xote.— Prescribed standard height of drawbars : Standard-gauge railroads: maximum 34 J, minimum 31 J, inches; narrow-gauge railroads: maximum 26, minimum 23. inches; 2-foot-gauge rail- roads : maximum l~i, minimum 14*, inches. AN ACT To amend an Act entitled "An Act to promote the safety of employees and travelers upon railroads by compelling com- mon carriers engaged in interstate commerce to equip their cars with automatic couplers and continuous brakes and their loco- motives with driving-wheel brakes, and for other purposes," ap- proved March second, eighteen hundred and ninety-three, and amended April first, eighteen hundred and ninety-six. Be it enacted by the Senate and House of Representa- tives of the United States of America in Congress as- sembled, That the provisions and requirements of the Act a safety appjjj entitled "An Act to promote the safety of employees and ^ m £ nd if 9 § travelers upon railroads by compelling common carriers a ^^^J: engaged in interstate commerce to equip their cars with r>iy. 'in Jerri- S © 101 1£S SDQ JJ1S~ automatic couplers and continuous brakes, and their loco- gtet of coium- motives with driving-wheel brakes, and for other pur- Provisions of ° * •*■ safety appli- poses," approved March second, eighteen hundred and ^ e ^ s ^to mnetv-three, and amended April first, eighteen hundredappiy m an ~ J A .cases when and ninety-six, shall be held to apply to common earners couplers are • • -Ti t-w- -j » n brought to- by railroads in the Territories and the District ol Co- gether. lumbia and shall apply in all cases, whether or not the couplers brought together are of the same kind, make, or type ; and the provisions and requirements hereof and of 66170°— 14 6 d 82 SAFETY APPLIANCE ACTS. nnce f acts a s P h P aii sa ^ Acts relating to train brakes, automatic couplers, a uioment' o"^ 3 ^ i rons 5 an d the height of drawbars shall be held to any ^d^fn^PP^ *° a ^ trains, locomotives, tenders, cars, and similar testate c o m - 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 use upon street railways. Power brakes. Sec. 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-braked cars in such train which are associated together with said fiftv per centum shall have their brakes so used and operated ; 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 lull hearing, increase the minimum percentage power or train of cars in any train required to be operated with power or be used. train brakes which must have their brakes used and oper- ated as aforesaid; and failure to comply with any such requirement of the said Interstate Commerce Commission Penalty. shall be subject to the like penalty as failure to comply with 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, an y common carrier, the Interstate Commerce Commis- re^ufiements; s i° n 5 or an y United States district attorney from any of !peeified b inact the provisions, powers, duties, liabilities, or requirements jmdact of "Apr! or * sa ^ Act of March second, eighteen hundred and ninety - to thfs 6 act Pply three, as amended by theAct of April first, eighteen hun- dred and ninety-six; and all of the provisions, powers, duties, requirements, and liabilities of said Act of March second, eighteen hundred and ninety-three, as amended by the Act of April first, eighteen hundred and ninety-six, shall, except as specifically amended by this Act, apply to this Act. Public, No. 133, approved March 2, 1903. SAFETY APPLIANCE ACTS. 83 AN ACT To supplement "An Act to promote the safety of em- ployees and travelers upon railroads by c6nipelling common car- riers 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," and other safety appliance Acts, and for other purposes. Be it enacted by the Senate and House of Represen- tatives of the United States of America in Congress as- sembled, That the provisions of this Act shall apply to To what car- • i i • i i • i. I j-i r ! e r s a PP llca - every common carrier and every vehicle subject to tnebie. 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 cars to be „ . ill n equipped with secure sill steps and efficient hand brakes; all cars re- sin steps hand quiring secure ladders and secure running boards shall r u n'n i n g bo 3. rd S D.DQ be equipped with such ladders and running boards, and grab 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 commodities, 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 ^"fg 1 ^ Act the Interstate Commerce Commission, after hearing, ^pm^^^en- shall designate the number, dimensions, location, and *jj u ™ l a t ^ r °f 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 designated 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 full hearing and for good cause shown; and failure to comply with any such requirement of the Interstate Com- 84 SAFETY APPLIANCE ACTS. merce Commission shall be subject to a like penalty as Period of failure to comply with any requirement of this Act: Pro- may be ex-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 ma^° m™ a! f*y °^ th iS ^ c ^ Said Commission is hereby given authority, ball htof draw " after 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 r r e sen t unlawful to use any car or vehicle in interstate or foreign standard height of draw- traffic which 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. violation f of Sec. 4. That any common carrier subject to this Act this V Ac<° ns ° f 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 become Defective cars defective or insecure while such car was being used by to nearest such carrier upon its line of railroad, such car may be available re- . , , „ x . n . « -.. pair point. hauled from the place where such equipment was first dis- covered 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 sec- tion 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 carriers not or hauling of such car shall be at the sole risk of the car- relieved from. -i 1 • • liability for rier, and 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. 85 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 C hiin". ling by 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 cars contain live stock or " per- ishable " freight. Sec. 5. That except that, within the limits specified in rel f e a / e r d ier f 8 r °^ the preceding section of this Act, the movement of a car j?^? 1 ^-/* c *£l with defective or insecure equipment may be made with- above 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- m ^°^lll io e ?: mission to extend the period within which any common supplementary carrier shall comply with the provisions of section three Act 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- Act of March piers and continuous brakes and their locomotives with 4 - 1911 - 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 86 ACCIDENT REPORTS 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; Public, No. 525, approved March 4, 1911. ofSXf Sundry civil act (appropriations) of June 28, 1902, authorizes Commission to employ " inspectors to execute and enforce the requirements of the safety-appliance act." port 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 investiga- tions thereof by said Commission. Be it enacted by the Senate and House of Representa- tives of the United States of America in Congress assem- bled, That it shall be the duty of the general manager, superintendent, or other proper officer of every common carrier engaged in interstate or foreign commerce by rail- road to make to the Interstate Commerce Commission, at rt t s° n of ly rait ** s °^ ce i* 1 Washington, District of Columbia, a monthly way accidents, 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 un- der 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 shall be relieved from the duty of reporting accidents in their an- nual financial and operating reports made to the Com- mission. Failure to S EC , 2. That any common carrier failing to make such make report ... within thirty report within thirty days after the end of any month days after end x . . of any month shall be deemed guilty of a misdemeanor, and upon con- a misdemeanor. .. i i> ..,.. viction thereof by a court or competent jurisdiction shall Penalty. be punished by a fine of not more than one hundred dol- lars for each and every offense and for every day during which it shall fail to make such report after the time herein specified for making the same. Power of the Sec. 3. That the Interstate Commerce Commission, Commission to . investigate ac- shall have authority to investigate all collisions, derail- ments. J p. . . . ' . ments, or other accidents resulting in serious injury to ACCIDENT REPORTS ACT. 87 person or to the property of a railroad occurring on the line of any common carrier engaged in interstate or for- eign commerce by railroad. The Commission, or any impartial investigator thereunto authorized by said Com- mission, shall have authority to investigate such colli- sions, derailments, or other accidents aforesaid, and all the attending facts : conditions, and circumstances, and for that purpose may subpoena 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 cooperation . . - . . with state coni- is investigated by a commission of the State in which it missions. occurred, the Interstate Commerce Commission shall, if convenient, 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 Reports of in- Commission shall, when it deems it to the public inter- v ' est, 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 manner as the Commission deems proper. Sec. 4. That neither said report nor any report of sa id to R b e e po ^| d n ?* investigation nor any part thereof shall be admitted as dama s e 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 Form of re- authorized to 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- Repeal of mon carriers engaged in interstate commerce to make full pr reports of all accidents to the Interstate Commerce Com- mission," approved March third, nineteen hundred and one, is hereby repealed. Sec. 7. That the term "interstate commerce," as used "interstate in this Act, shall include transportation from any State " foreign com- or Territory or the District of Columbia to any other fined. 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. £8 MEDALS OF HONOK ACT. when Act ef- g EC> g. 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- Life - saving bled, That the President of the United States be, and Med a'l s of he is hereby, authorized to cause to be prepared bronze medals of honor, with suitable emblematic devices, which shall be bestowed upon any persons 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 Proviso. commerce: Provided, That no award of said medal shall "Proof * be made to any person until sufficient 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 Rosettes and medal of honor may be awarded under the provisions of ribbons. ^jg j^ c i a rosette or knot, to be worn in lieu of the medal, 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 ne\7 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. Payment of g EC . 3. That the appropriations for the enforcement expenses. . rr * . 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. MEDALS OF HONOR ACT. 89 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 ^^pJ^"^ addressed to and filed with the Interstate Commerce made - 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 prac- ticable, and other pertinent circumstances should be stated. The affidavits should be made before an officer JP° nt . e J lts of affidavits. duly authorized 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 post- master, to the effect that the affiants are reputable and creditable persons. If the affidavits are taken before an officer without 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 consider 1 appi£ and other evidence received in connection therewith, shall 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 covering the case, and file the same, together with the committee's recommendation, with the Commission, which brief and recommendation shall be transmitted by the m iuee. 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- Brief of com- 90 HOURS OF SERVICE ACT. ve^igatfons in * cee( ^ to tne 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 re- port shall be filed and made a part of the evidence con- sidered by the committee, appr o^aTof %- Upon final approval of the committee's recommenda- tion 0mmenda ti° n DV the President the Commission shall take such measures to carry the recommendation into effect as the M President may direct. Designs for ■* . . medals. 4. The Commission shall cause designs to be prepared for the medal, rosette, and ribbon provided for by the Act, which designs shall be submitted to the President for his approval. HOURS OF SERVICE ACT. AN ACT To promote the safety of employees and travelers upon railroads by limiting the hours of service of employees thereon. Be it enacted by the Senate and House of Representa- tives of the United States of America in Congress assem- rier and em bled, That the provisions of this Act shall apply to any dIovggs subicct • to Act. ' 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 t Q any other place in the United States. The term " rail- term "rail- J r 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 terjn " employees " ees." as used in this Act shall be held to mean persons actually engaged in or connected with the movement of any train, t S e x ma n ximum ^ec. 2 - That it shall be unlawful for any common car- ls er v\° e°of r * er ' ^ s °ffi cers or agents, subject to this Act to require or trainmen. permit any employee subject to this Act to be or remain on duty for a longer period than sixteen consecutive hours, and whenever any such employee of such common carrier shall have been continuously on duty for sixteen hours he shall be relieved and not required or permitted HOURS OF SERVICE ACT. 91 again to go on duty until he has had at least ten consecu- tiv ^ en h ou? s Be off tive hours off duty ; and no such employee who has been dut y- 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 s ^Ve|rap r h erator, train dispatcher, or other employee who by the ana^ telephone 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 night 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 on not exceeding three days in any week: Provided further. The Interstate Commerce Com- commission 1 . . , may extend mission may after full hearing in a particular case and period. 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. That any such common carrier, or any officer vi ^tion y for 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 to exceed five hundred dollars for each and every violation, to be recov- ered in a suit or suits to be brought by the United States district attorney in the district court of the United States prosecutions, 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 satisfac- tory 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 to lodge with the proper district attorneys information of any such viola- tions as may come to its knowledge. In all prosecutions under this Act the common carrier shall be deemed to have had knowledge of all acts of all its officers and agents: Provided. That the provisions of this Act shall xi- £ ij. -j ui -J j. Unavoidable not apply in any case 01 casualty or unavoidable accident accidents, etc. or the act of God ; nor where the delay was the result of 92 ASH-PAN ACT. a cause not known to the carrier or its officer or agent in charge of such employee at the time said employee left a terminal, and which could not have been foreseen: Pro- etcT crews ng ' v ^ e d further, That the provisions of this Act shall not Enforcement, apply to the crews of wrecking or relief trains. Sec. 4. It shall be the duty of the Interstate Commerce Commission to execute and enforce the provisions of this Act, and all 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. ASH-PAN ACT. AN ACT To promote the safety of employees on railroads. Be it enacted by the Senate and House of Representa- tives of the United States of America in Congress assem- Ash-pan hied, That on and after the first day of January, nineteen equipment in , " J ' i n t e rstate hundred and ten, it shall be unlawful for any common commerce. . . . . J 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, e ^f ment a in ^ec. ^" That on and after the first day of January, Territories and n i ne teen hundred and ten, it shall be unlawful for any District of Co- . ' , J lumbia. common carrier by railroad in any Territory of the 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. Penalties. g EC 3 That any such common carrier using any loco- 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 Enforcement, committed ; and it shall be the duty of such district attorney to bring such suits upon duly verified informa- tion being lodged with him of such violation having TRANSPORTATION OF EXPLOSIVES ACT. 93 occurred; and it shall also be the duty of the Interstate ^o^inior 3 Commerce Commission to lodge with the proper district matioE'. attorneys information of any such violations as may come to its knowledge. Sec. 4. That it shall be the duty of the Interstate Com- eJ^offiJ: merce Commission to enforce the provisions of this Act, sion - 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 clu ^ e e c d elvers in ' 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 pan w is h n n t ^J 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. 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 : Sec. 232. It shall be unlawful to transport, carry, or^^of™ 1 ^ convey, any dynamite, gunpowder, or other explosives, carded ^n gas- between a place in a foreign country and a place within or for hire, 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 94 TRANSPORTATION OF EXPLOSIVES ACT. 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. Commerce Sec. ^33. The Interstate Commerce Commission shall m°aTe SS r«£uia° formulate regulations for the safe transportation of ex- portauor^of ex- plosives, which shall be binding upon all common carriers plosives. engaged in interstate or foreign commerce which trans- 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. Liquid nitro- Sec. 234. It shall be unlawful to transport, carry, or nit C to ri be ca c r- convey, liquid nitroglycerin, fulminate in bulk in dry ve e hides. certain condition, or other like explosive, between a place in a foreign country and a place within or subject to the jurisdiction of the United States, or between 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 BOILER INSPECTION ACT. 95 the transportation of passengers or articles of commerce by land or water. Sec. 235. Every package containing explosives or other Marking of * c ° or packages of ex- dangerous articles when presented to a common carrier plosives ; d e - „ . . . . . ceptive mark- for shipment shall have plainly marked on the outside ing. thereof the contents thereof ; and it shall be unlawful for any person to 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 two thousand dollars, or imprisoned not more than eighteen months, or both. Sec. 236. When the death or bodily iniury of any per- Death or bod- . . 1 1 y injury son is caused by the explosion of any article named in caused by such ,, ~ ,. -i , j- i -I ,, i . transportation. 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. 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 tlie Senate and House of Representa- tives of the United States of America in Congress assem- bled, That the provisions of this Act shall apply to any Locomotive ,-, . /J. . , boilers. common carrier or carriers, their onicers, agents, and Common car- employees, engaged in the transportation of passengers or by act. 96 BOILER INSPECTION ACT. 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 m nin of an y pl ace ^ n tne United States through a foreign country terms. to any other place in the United States. The term " rail- " Railroads. . . road " as used 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." and 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. Locomotives. Sec. 2. That from and after the first day of July, nine- with S safe^boi?- teen hundred and eleven, it shall be unlawful for any ers, unlawful. common carrier, its officers or agents, subject to this Act to use any locomotive engine propelled by steam power in moving interstate or foreign traffic unless the boiler 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 inspection, j^ 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. asX e Jn a ° d chte? Sec - 3 - That there sha11 be appointed by the President, inspectors. n t by and with the advice and consent of the Senate, a chief ment, etc. 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- Seiection. 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 salaries, etc. 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 BOILER INSPECTION ACT. 97 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, 0ffice> etc- 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 an d dist \ n c s t P ection 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 spectors"* ' n boilers. Said inspectors shall be in the classified service C iviF service!*^ and shall be appointed after competitive examination ac- 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 the 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 office rent, stationery, 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 to obtain the most competent inspectors possible, it shall of applicants. 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 Commission as a part of its examination. No person in- tions. squaIlflca 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. Sec. 5. That each carrier subiect to this Act shall file inspection by its rules and instructions for the inspection of locomotive 66170°— 14 7 carriers. 98 BOILER INSPECTION ACT. boilers with the chief inspector within three months after the approval of this Act, and after hearing and approval a p p r o v a 1, by the Interstate Commerce Commission, such rules and etc., of r u 1 e s . * . . ' filed. instructions, with such modifications as the Commission requires, shall become obligatory upon such carrier : Pro- Ru°es S °to be v ^ e( ^i however, That if any carrier subject to this Act observed if shall fail to file its rules and instructions the chief in- currier runs to file any. 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, shall be obligatory, and a violation thereof pun- changes. i&hed 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- office rules, proved bv the Interstate Commerce Commission. The 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- Approvai oftrict inspectors: Provided, however \ That all such rules fill rules and instructions shall be approved by the Interstate Com- merce Commission before they take effect. District in- Sec. 6. That it shall be the dutv of each inspector to 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 in- spectors as will avoid the necessity for duplication of Personal in- work. Each inspector shall make such personal inspec- boiiers. tion of the locomotive boilers under his care from time to time as may be necessary to fully carry out the provisions of this Act, and as may be consistent with his other duties, but he shall not be required to make such inspections at stated times or at regular intervals. His first duty shall earrie P r e s ction by De *° see tnat tne carriers make inspections in accordance with the rules and regulations established or approved by 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- BOILER INSPECTION ACT. 99 ject to this Act shall file with the inspector in charge, under the oath of the proper officer or employee, a dupli- p s r ^ ° r t ° ' b e e cate of the report of each inspection required by such filed - rules and regulations, and shall also file with such in- ^ spector, under the oath of the proper officer or employee, a report showing the repair of the defects disclosed by the Repairing de- 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 ^^^£1" the performance of his duty, find any locomotive boiler etc. or apparatus pertaining thereto not conforming to the requirements of the law or the rules and regulations es- tablished 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 £^*f£iH t0 carrier, when notified by an inspector in writing that a? hief inspector ^ r ° by carrier. locomotive boiler is not in serviceable condition because of defects set out and described in said notice, may, within five days after receiving said notice, appeal to the chief inspector by telegraph or by letter to have said boiler re- examined, and upon receipt of the appeal from the in- ti0 n eexamina ' 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 days from date of notice. If upon such reexamination Effect, 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 notice the carrier may, within thirty days, appeal to the. ^ft^lltt Interstate Commerce Commission, and upon such appeal, commission ° e and after hearing, said Commission shall have power to revise, modify, or set aside such action of the chief in- Final action, spector and declare that said locomotive is in serviceable condition and authorize the same to be operated: Pro- vided further. That pending either appeal the require- requirements ments of the inspector shall be effective. ??| c ip5ea5S nd ' Sec. 7. That the chief inspector shall make an annual por \ n °f a chief report to the Interstate Commerce Commission of the inspector. 100 BOILER INSPECTION ACT. work done during the year, and shall make such recom- mendations for the betterment of the service as he may desire. Accidents Sec. 8. That in the case of accident resulting: from fail- from failure of ... boilers. ure 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 that purpose. And where the locomotive is disabled to served. e pre 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, without hindrance or interference to traffic until after said in- ^Detaiied re- spection. The chief inspector or an assistant or the designated inspector making the investigation shall ex- amine 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. Reports by in- The Interstate Commerce Commission may at anv time merce Commis- call upon the chief inspector for a report of anv accident sion of cause, i i • .* • , • n , . * . -, etc. embraced in this section, and upon the receipt of said re- 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- Reports, etc., s i° n deems proper. Neither said report nor any report of damage^ults! 11 sa id investigation nor any part thereof shall be admitted 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. Penalty for Sec. 9. That any common carrier violating this Act or violations by . , . . -, •, « carriers. any rule or regulation made under its provisions or any 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 Duty of dis- States having jurisdiction in the locality where such vio- to C bring°suits S lation shall have been committed ; and it shall be the duty of such attorneys, subject to the direction of the Attorney General, to bring such suits upon duly verified in form a- BLOCK SIGNAL RESOLUTION. 101 tion being lodged with them, respectively, of such vio- lations having occurred; and it shall be the duty of the fr om f cMef "in- chief inspector of locomotive boilers to give information s P ector - to the proper United States attorney of all violations of this Act coming to his knowledge. Sec. 10. That the total amounts directly appropriated pr ^priations ap to carry out the provisions of this Act shall not exceed for any one fiscal year the sum of three hundred thousand dollars. Public, No. 383, approved February 17, 1911. BLOCK SIGNAL RESOLUTION. 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 the Senate and House of Representatives of the United, States of America in Congress assembled, That the Interstate Commerce Commission be, and it is directed m to Bi in° hereby, directed to investigate and report on the use of repor g t at on a ne d and necessity for block-signal systems and appliances for £^ k s gjg£ al f or 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. In transmitting its report to the Congress the Commis- to C take ttl testi° sion shall recommend such legislation as to the Commis- ?e commenfc sion seems advisable. tions " 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 22, tes ^ ck signal 1913, provides that the Interstate Commerce Commission, at its discretion, may investigate and report in regard to the use and necessity for block-signal systems and appli- ances for the automatic control of railway trains and any appliances or systems intended to promote the safety of railway operation, including experimental tests of 102 BLOCK SIGNAL RESOLUTION. such systems and appliances as shall be furnished in com- pleted shape, to such Commission for such investigation and test, free of cost to the Government, in accordance with the provisions 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. IJ^DEX. Page. Absorption, noncompetitive short lines by main lines 64 Access, Commission's agents to carriers' property 39 Accidents : Excepted from hours-of-service act 91 From defective boilers 100 Accidents report act , 86-88 Damage suits, reports not to be used in 87 Failure to report 86 Foreign commerce defined-^ 87 Form of report 87 Interstate commerce denned 87 Monthly reports of accidents 86 Penalty for failure to report 86 Power of Commission to investigate accidents 86 Repeal of prior act 87 Report of investigations 87 State commissions, cooperation with 87 Testimony 87 Accounts of carriers: Access to — Commission shall have 44 Commission's agents shall have 39 Destruction of, Commission may permit 44 False, by shipper to obtain refund 23 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 91 Action for damages: Complaint to Commission or suit in court 21 Enforcement of Commission's award of damages 33 Government-aided lines . 76 Adjacent foreign country, transportation to and from 7 Advance in rates: Burden of carrier to justify 30 Commission may suspend 29-30 Due to elimination of water competition 13 Advantage, unreasonable, unlawful 12 Affidavits : False by shipper to obtain refund, etc 23 Medals of honor act 89 Affirmations, Commissioners may administer 36 Agents, necessary, free transportation 9,46 103 104 INDEX. Agents of carrier : Page. Acts of, are deemed to be acts of carrier 57 Deemed to know acts of 91 Xame of, to be posted at stations 18-19 Passes to . 9, 46 Service on carrier by leaving copy with 49 Washington agents — Service of order of Commission on 34 To be designated 49 Agents of Commission, special : To inspect accounts, Commission may employ 44 To receive evidence, Commission may employ 45 Agreement : Annual report of carrier concerning 43 Commission may require production of 25 Conditioned upon purchaser not to deal with competitor 62,63 Filed with Commission are public records 35 For pooling of freights and division of earnings, unlawful 13 No person excused from producing 54 Of carriers to be filed with Commission 17 Of Government-aided lines, to be filed with Commission 76 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 carriers in train 82 Allowance : Shipper to obtain by false means, a misdemeanor 23 To Government made by carriers in consideration of land grants, etc_ 39 To owners of traffic for service rendered 32 Amendments to act not to affect pending cases 48,49,60 American Railway Association to designate height of drawbars 80 Ammunition under explosives act 94 Analysis of methods of ascertaining costs of property of carriers 38 Annual reports of carriers : Commission may require and prescribe method of making 42 Government-aided railroad or telegraph lines 76 Statistics in, are public records 35 To be filed by September 30 of each year 43 Annual reports, chief inspector of locomotive boilers 99 Annual reports of Commission : Commission to Congress 46 Printed for distribution 28 Antitrust acts: Order under Clayton Act does not relieve from 70 Not repealed by Clayton Act 64 Sherman, violators of, not to use Panama Canal 15 Appeals : Circuit Court of Appeals to United States Supreme Court under Clayton Act 69 Costs, enforcement of order for payment of money 33 District courts to United States Supreme Court 52 District inspector's decision — To chief inspector 99 To Commission 99 1 INDEX. 105 Appeals — Continued. Page. Inspectors' requirements effective pending 99 Interested parties may, from enforcement of orders under Clayton Act 69 Supreme Court and court of appeals under expediting act 61, 62 Appearances before Commission, by attorney or in person 36 Appliances, Commission to designate 83 Application : Carriers — For relief from operation of section 4 13 To determine question of competition with water lines 14 Medals of honor 89 Shipper's or lateral branch line's, for switch connection ± 11 Appointments by President: Boiler-inspection act 96 Interstate Commerce Commissioners 24,48 Appropriations : Block-signal resolution 101 Boiler-inspection act 101 Medals of honor act 88 Arrangement : Between carriers filed with Commission 18 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 92-93 Duty of Commission 93 Enforcement 93 Equipment necessary 92 Locomotives excepted 93 Penalty for violation 92 Receivers included 93 Association : Complaint to Commission by 27 Subsidy or donation from, to carriers 38 Assumption of risk 81 Attorney General: Authority to transfer property of Commerce Court 53 Certificate of, to expedite suits 61 Commission to report to, of violations of making purchases without bids 67 District attorneys to prosecute under direction of 25,34 Duty of, under Government-aided lines act 75 Notice to, of tentative valuation 40 To direct prosecutions 58,77 To direct suits, boiler-inspection act 100 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 79 106 INDEX. Award of damages: Page Commission may make 33 Enforcement of Commission's 33 Baggage : Agents, passes to 9-10 Free, under mileage tickets 47 Personal, sample, and excess 9 Bonk : Director, officer, or employee in more than one, prohibited 64 Mutual savings, directors and officers in 65 Banker, private, director, etc., in bank organized under United States laws. 65 Banking arrangements, for issuance of stocks, etc 38 Banks, Federal Reserve Board to enforce Clayton Act where applicable to_ 68 Betterments in carrier's property 40 Bids: Contracts, etc., between corporations to be by competitive 67 Penalty for preventing bidding or competition among bidders 67 Bill, false, by shipper 23 Bill of lading: Carrier shall issue 31,45 Exempting carrier from liability 45 False, by shipper to obtain refund 23 Issued for transportation of stores used in valuation service 42 Regulations, reasonable, affecting 9 Billing, false, by shipper or carrier 22 Block-signal resolution 101 Boiler-inspection act , 95-101 Accidents reported to chief inspector 100 Annual report of chief inspector 99 Appeal to chief inspector and Commission 99 Appropriation 101 Boilers subject to 96 Carriers affected 95 Chief inspector 96, 99, 100, 101 Civil service 97 Damage suits, reports not to be used in 100 Defective boilers, notice of 99 Employees defined 96 Enforcement of 100 Examinations for inspectors 97 Inspection — By carriers 97, 98 Districts, United States divided into 97 Inspectors, salary, etc 96,97,98 Investigation of accidents 100 Locomotive boilers must be safe 96 Offices of chief inspector and district inspector 97 Penalty for violation 100 Railroads defined 96 Report of accidents 100 Rules for inspection, Commission to approve 98 INDEX. 107 Bond : Execution of — Pago. Injunction proceedings under Clayton Act 71 Where temporary restraining order granted under Clayton Act__ 72 Bonds of carriers, valuation report shall show 38 Books and papers: Commerce Court, sent to Department of Justice 53 Commission may require production of 25 Courts may compel production of 25.59 No person excused from producing 54 Branch line: Application of, for switch connection 11 May be acquired by main lines . 64 Breaking bulk, unlawful unless made in good faith 21 Bridges included in term "railroad" 8,90 Briefs to President, medals of honor act 89 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 Messages, classification 8 Subject to act 7 Calamitous visitation, carrying passengers free in cases of 10 Canal : Lake Erie and Ohio River Ship Canal 77 Panama Canal 14, 15,20 Capital stock: Director, etc., in more than one bank where entire capital stock is owned by the other 65 Increases or decreases, valuation report shall show 3S Caretakers of live stock, etc., passes to 9-10 Carmack amendment 45 Carriers : "Common carrier" defined 8 Deemed to have knowledge of acts of agents, etc 91 Held to mean common carrier 17 Notice to, of tentative valuation 40 Shall file rules and instructions 97,98 Subject to act 7 Subject to — Accidents-report act 86 Ash-pan act 92 Boiler-inspection act 95 Explosives act 93 Hours-of -service act 90 Safety-appliance act 79, 81, 83 Cars: Carriage in different 21 Defective, may be hauled to nearest repair point 84 108 INDEX. Cars — Continued. Page. Equipped with train brakes, automatic couplers, etc 79 Exchange, interchange, and return S Furnished for shipper with spur track 11 Included in term "transportation" 8 Mandamus to compel furnishing 4S Not equipped with safety appliances, not to be handled 79 Subject to safety-appliance act 85 Certificate, false, by shipper to obtain refund, etc 23 Certiorari, review by Supreme Court of order under Clayton antitrust act- 09 Chains, hauling by, not permitted unless cars contain live stock or per- ishable freight 85 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 10 Unless filed, carrier not to transport 17 Charitable: Institutions, passes to inmates of 9,40 "Work, passes to persons engaged in 9,40 Chief inspector : Annual report to Commission 99 Appointed by President 96 Carriers may appeal to 99 Notify district attorneys of violations of act 101 Report of accidents 100 Children, minor, of deceased employees of carrier, passes to 10 Circuit court of appeals : Appeals to, under expediting act 02 Commission may apply to for enforcement of order under Clayton antitrust act 69 Exclusive jurisdiction under Clayton antitrust act 70 Civil service: District inspectors chosen by 97 Shall use questions approved by Commission 97 Civil suit to recover forfeiture 34 Claims : False, by shipper to obtain refund, etc 23 To be filed within two years 33 Classification : 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 INDEX. 109 Classification — Continued. Page. 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 97 Clayton antitrust act 62 Clerical assistance, boiler-inspection act 97 Collisions must be reported and investigated . 86 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 anti- trust act where applicable to other than common carriers and banks 68 Person engaged in, not to discriminate in prices 62 Commerce Court: Abolished 50 Books, dockets, etc., sent to Department of Justice 53 Cases pending in. transferred to district courts, exceptions 53 Cases remanded by Supreme Court to district courts 53 Jurisdiction of, transferred to district courts 50 No successors to judges to be appointed 50 Tenure of office of judges not affected 50 Commercial messages, telegraph, etc 8-9 Commissioners : Method of appointment and term 24,48 Not more than four from same political party 48 One or more may sign subpoena 36 Qualifications of - 24, 46 Salary of 36 Committee, medals of honor act 89 Commodities clause ._ li Common carriers : Commission to enforce compliance with Clayton antitrust act where applicable to 68, Complaints by — 27 Defined 17, 90 Duty to observe and comply with orders 34 Embezzlement by President, etc., of felony 66 Includes receivers, ash-pan act 93 Subject to act 7 To include express and sleeping-car companies 8 Commutation tickets, issuance of, not prohibited 46 Companies, complaints to Commission by 27 Compensation : Employees transported in valuation service 42 For short haul as great as or greater than for long haul 12-13 For switch connection, Commission to investigate 11 Greater or less than published tariffs 47 Reasonable, rules for 8 Competent evidence, report and decision of Commission 28 110 INDEX. Competing line: p agc . Railroad not to have interest in competing water line 13-14 Shipper may designate routing 31 Competition : Discrimination in prices so as to lessee 62 Elimination of, by interlocking directorates 65 Penalty for preventing, among bidders 67 Restraint in. by acquisition of stock of competitor 63 Competition of water line: Commission to determine question of 1 14 Reduced rate to meet 13 Competitor, lease, sale, or contract upon condition not to deal with. unlawful 62, H3 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 74 How made and served 27 Investigation of 27 No dismissal, because no direct damage to complainant 28 Procedure for investigating under Clayton antitrust act 68 Proposed rates 29 Satisfaction of, by carrier 27 Compliance, time for : Hours of service act 91 Safety-appliance act 81, 84, 85 Compulsory-testimony act 54 Concessions : By carriers in consideration for grants 39 Unlawful to give or receive 56 Conclusions, report shall state 28 Concurrence in joint tariffs 17 Condemnation cost of property of carriers . 38 Conflicting laws repealed 49. 54, 60, 77 Congress : Annual report of Commission to 46 Right to amend or repeal Government-aided railroad acts 77 Valuation report of Commission to 39 Connecting lines : Discrimination between, forbidden 12 Initial carrier liable for loss or damage 45 Interchange of traffic between 12 Recourse against, by initial line 45 Refusal of cars from 79 Use of tracks or terminal facilities of another carrier 12 Connecting telegraph lines with Government-aided lines 73 Connecting tracks, terms, and conditions of construction 19 Connivance by shipper with carrier 23 Consideration, as a rebate from published tariffs forbidden 58 Consignee : 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 INDEX. Ill Consignor : Page. False billing, etc., declared a misdemeanor 23 Unjust discrimination against, induced by otber shipper 24 Construction : Branch or short lines by main lines, not prohibited 64 If part of act held invalid, other parts shall not be affected 73 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 90 Contracts : And agreement to be filed with Commission 17 Annual report of carrier concerning 43 Carrier prohibited from purchasing from another corporation hav- ing same officers - 66 Commission may require production of 25 Conditioned upon purchaser not to deal with competitor- _ 62 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 54 Of Government-aided lines to be filed with the Commission^ 76 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 75 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 organization, history of, in valuation report 38 Corporations : Complaints to Commission by 27 Liable under Elkins Act 56 Penalty of imprisonment shall not apply to 23 Same person not to be director in two or more 65 Subsidy or donation from, to carriers 38-39 Subsidiary formation of, not prohibited 63 Correction of valuation 40 Cost, false representation by shippers 23 Cost of carriers' property, original and reproduction 38 Costs : And expenses of prosecution 25.34 Attorney's fees, collected as part of 21,33 Condemnation of property of carriers 38 Depositions 27 Petitioner not liable for, unless on his appeal 33 Counsel fee, liability of carrier 21,33 County, donation from, to carriers 38-39 112 INDEX. Couplers : Pa ^ e - Act applies where brought together 81 Cars must be equipped with automatic "79 Courts. (See also District courts.) Commerce **"' ^ Commission may apply to, for enforcement of order under Clayton Antitrust Act 69 District. 50 Evidence different from Commission's valuation sent to Commission. 41 Final valuation prima facie evidence 41 Order for payment of money to be enforced in 33 Remedy in Commission or 21 Scope of jurisdiction in prosecutions 57 Supreme 52.53 To compel witnesses to attend and testify 25 Criminal provisions 10, 18, 22, 23, 24, 44, 54, 56, 57, 95 Criminate, that testimony may, no excuse 21,26,54,59 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 76 Award of, Commission may make 33 Bringing a suit for 21. 33. 59 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 Election of remedies 21 Enforcement of award in court 33 Exemption of carrier from liability 45 Initial carrier liable on through shipments 45 Issuance of temporary restraining order, without notice, against. under Clayton Antitrust Act 72 Joint liability for Report shall include finding of fact 28 Suit against person receiving rebate 58 Suit on award, what petition shall state 33 Damage suits: Boiler-inspection reports not evidence in 100 Accident reports not evidence in 87 Data, valuation of Commission, public inspection of 40 Debts, funded and floating, annual report of carrier shall show 42 Decision, equal division of court under expediting act 61 Decision of Commission, report in writing 28 Decisions of Commission to be published and be competent as evidence Dedication to public use of property of carriers, time of Default of carrier to appoint Washington agent 49 Defective : qq Boilers shall not be used Cars may be hauled to nearest repair point Delivering passengers and property from connecting line „,^__ 12 I INDEX. 113 Delivery of property : p age> For transportation 9 Included in term "transportation" g Wholly within one State 7_8 Department of Justice, Commerce-Court property transferred to 53 Deposition : False, by shipper to obtain refund, etc 23 Fees 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 Derailments must be reported 86 Designation of Washington agent filed in office of secretary 49 Designs for medals 90 Destination, defined 51 Destitute persons, passes to 46 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 57 To prevent continuous carriage, unlawful 20-21 To rebate, forbidden 17 Different compensation from tariff rate 17 Director : Bank, eligibility of 64 Corporation, eligibility of 65 In more than one bank prohibited 64 In more than one bank where entire capital stock is owned by the other 65 Private, and bank organized under United States laws 65 Private bank 65 Same person not to be in two or more corporations 65 Disabled employees of carriers, passes to 10 Disadvantage, unreasonble or unlawful, forbidden 12 Disclosing information : Concerning shipments 31-32 Penalty for examiner 45 Discontinuance of discrimination by order of court 59 Discriminate, shipper inducing carrier to, misdemeanor 24 Discrimination : Between connecting lines forbidden 12 Forbidden by telegraph-line connection with Government-aided line__ 74 Lake Erie & Ohio River Ship Canal not to make 77 None by persons engaged in commerce in price of commodities 62 Penalty for inducing 24 Unjust by special rate, rebate, drawback, or device 12 Unlawful, fine or imprisonment for 22 Unlawful to give or receive 56 66170°— 14 8 114 INDEX. District attorneys: Duty under — Page. Ash-pan act 92 Boiler-inspection act 100 Hours-of-service act 91 Safety-appliance acts 80, 82, 85 To prosecute for recovery of forfeitures 34 To prosecute under direction of Attorney General 25,34 District courts : Appeal from 52 Commerce Court jurisdiction and cases transferred to 50.53 Duties under Elkins Act 61 Jurisdiction act 50 Jurisdiction — Ash-pan act 92 Boiler-inspection act 100 Clayton antitrust act 66 Hours-of-service act 91 Safety-appliance acts 80 To restrain violation of Clayton antitrust act 70 Mandamus to compel compliance with act 41,45,47 Procedure involving Commission's orders 51 To compel by mandamus compliance with valuation provisions 41 District of Columbia : Included in — Ash-pan act 92 Boiler-inspection act 97 Safety-appliance acts 81 Valuation of carrier's property in 39 District inspectors, boiler-inspection act, duties, etc 97,98 Districts, United States, divided into, boiler-inspection act 97 Divided court under expediting act 61 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, to Department of Justice 53 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- 54 Penalty for refusing to produce 54 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 77 Unlawful 12 Drawbars : Commission may modify height of 84 Standard height of 80,81 Driving-wheel brakes, engines must be equipped with 79 Duty and power of Commission 25 INDEX. 115 Page. Duty, period of, hours-of-service act 90 Dynamite under explosives act 93 Earning 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 49 Effective date, interlocking directorates 66 Election of remedies for damages caused by violations 21 Eleemosynary : Institutions, passes to inmates of 9 Work, passes to persons engaged in 9 Electric locomotives excepted from ash-pan act 93 Electric passenger railways, street, through route and joint rate with 30 Elements of valuation : 38 Elevation, included in term "transportation" 8 Eligibility of director, officer, or employee 64,65 Elkins Act 56 Embezzlement, president, etc., of common carrier, felony 66 Emergency cases, hours-of-service act 91 Employee : Bank, eligibility of 64 In more than one bank, prohibited 64 In more than one bank where entire capital stock is owned by the other 65 Private bank, and bank organized under United States laws 65 Employees of carriers : Carriers' annual report shall show salaries, etc 42 Defined, boiler-inspection act 96 Defined, hours-of-service act 90 Duty to observe and comply with Commission's orders 34. Killed in service, pass for remains 10 Passes to — - 9, 10, 46, 47 Period of duty, hours-of-service act 90 Subject to penalties for violating law 22, 23, 24 What term " employee " includes 10 Employees of Commission: Commission's annual report to show names, etc 46 Commission may hire and fix compensation of 36, 37, 44, 45 Commission may hire to investigate block signals 101 Employment, Commissioners shall have no other 25 Employment of inspectors: Boiler-inspection act 96, 97 Safety-appliance acts 86 Enforcement of act 25 Enforcement : Ash-pan act 92, 93 Boiler-inspection act 100 Hours-of-service act 92 Safety-appliance acts 85 Entry, false by shipper to obtain refund, etc 23 Epidemic, carrying passengers free in case of 10 116 INDEX. Equal facilities: p age . For interchange of traffic 12 Telegraph line connecting with Government-aided line 74 Equipment : Cost and value, annual report of carrier shall show 42 Safety-appliance acts 79 Equity suits under act expedited--! 60 Evidence : Court may order Commission or board to hear additional under Clay- ton antitrust act 69 Existing law for production of 49 Final valuation, prima facie evidence 41 Findings of fact by Commission, prima facie 33 Findings of fact under Clayton antitrust act. conclusive 69, 70 Immunity of witnesses 21,26,49.54.55.59 In court as to value different from valuation of Commission 41 Not to be used as, accident reports 87 Not to be used as boiler-inspection reports 100 Reports and decisions, competent as 28 Special agents or examiners may receive 37,45 Examinations, chief inspector to prepare questions 97 Examiners, special: Commission may employ 37,44 Penalty for divulging information 45 Testimony taken before 37.45 Exceptions : Ash-pan act 93 Explosives act 94 Hours-of-service act 91 Permitting use of chains, safety-appliance acts 85 Safety-appliance acts 80, 82 Excess baggage 9 Exchange of cars 8-9 Exchange of service between common carrier and telegraph companies, etc 9 Excursion tickets, not prohibited 46 Exemployees, entering service of carrier, passes to 10 Exempting carrier from liability 45 Expediting act , 60 Expediting case, hearing on, temporary restraining order under Clayton antitrust act 72 Expediting cases involving increased rates 30 Expediting cases under Clayton antitrust act 70 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 Explosive act. (See Transportation-of -explosives act.) Explosives : Commission to regulate packing, etc 94 Not to be carried on passenger vehicles 93 INDEX. 117 » Page. Export traffic, subject to act 7-8 Exposition, free or reduced rates for 46 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 74 For interchange of traffic 12 For transportation 9 None furnished unless specified in tariffs 17 Of shipment included in term "transportation" : 8 To be specified in schedules 15-16 Fairs, free or reduced rates for 46 False : Billing, etc., by carrier or shipper 22-23 Entry in accounts : 44 Families of carrier's employees : Passes to 9, 10, 46 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 Rules and regulations affecting 15-16 Unless filed, carrier not to transport 17 Federal reserve banks, directors of, being directors in other banks 65 Federal Reserve Board, to enforce compliance with Clayton antitrust act where applicable to banks 68 Federal Trade Commission to enforce compliance with Clayton antitrust act where applicable to commerce other than commerce carriers and banks.,-— i 68 Feeders, main lines may acquire 64 Fees: Attorneys, part of costs 21,33 Witnesses 37 Witnesses making depositions 27 Felony, embezzlement by president, etc., of common carrier 66 Ferries included in term "railroad" 8 Filing tariffs with Commission 15,47 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 86 Finding of fact : Conclusive under Clayton antitrust act 69,70 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 87 118 INDEX. Foreign country: Page. 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 54,55 Payable into Treasury and recoverable in civil suit 34 Penalty for giving rebate 56 Form : Accounts, etc., Commission may prescribe 44 Addressing agent, when name not posted 19 Of schedules 9, 17 Of valuation results 39 Forwarding passengers and property from connecting line 12 Franchises, cost and value, annual report of carrier shall show 42 Franks, privilege not prohibited 10 Free: Baggage under mileage tickets 47 Transportation prohibited; excepted classes 9,10,46 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 94 Funded debt, annual report of carrier 42 Funds, embezzlement of, by president, etc., of common carrier 66 Furloughed employees of carriers, passes to 10 Furnishing cars 8, 11 Fuses under explosives act 94 Gas transportation, not subject to act 7 Gift to carriers from "United States, etc., value of 38,39 Government : Free or reduced rates 46 Messages by telegraph, etc 8-9 Government-aided railroad and telegraph line act 73 Governor of State, notice to, of tentative valuation 40 Grab irons must be provided : On all cars 80 On top of ladders 83 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 explosives act 93 Hand brakes, cars must be equipped with 83 Handholds : Cars must be equipped with 83 Must be provided with, or unlawful to use car 80 Handling explosives in transit, Commission to regulate 94 INDEX. 119 Handling of property : Page. Included in term "transportation" 8 Regulations affecting 9 Wholly within one State 7-8 Hearing : Before three judges to expedite suits in equity 61 Full hearing provided for 20, 28 On petition to restrain violations of Clayton antitrust act 71 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 68 Temporary restraining order, without notice, under Clayton antitrust act 72 History of carriers, valuation report shall show 38 Homeless person, pass to 9,46 Homes for soldiers and sailors, passes to inmates of 9,46 Hospital, inmates of, passes to_' 9 Hours of service act 90-92 Common carriers subject 90 Compliance with act 91 Continuous service 90 Employees defined 90 Enforcement 92 Exceptions to act 91 Off duty 91 Penalty for violation 91 Prosecutions 91 " Railroad " defined 90 Service hours 91 Telephone and telegraph operators 91 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, 26, 54, 55, 59 Import traffic, subject to act 7-8 Improvements : Valuation of carriers 40 In carriers' property 42 Increased rates: Burden of proof on carrier, as reasonableness of 30 By railroads, elimination of water competition 13 Incrimination, no person excused from testifying by fear of 21, 26, 54 Indigent persons, passes to 9,46 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 40 120 INDEX. Initial carrier: Page. Bill of lading to be issued by 31,45 Liable for loss or damage on through shipments 45 May have recourse upon carrier responsible for loss or damage 45 Injunction : By district court, involving Commission's order 51 Commission's orders, appeal 51,52 Preliminary, not to issue without notice under Clayton antitrust act- 71 Reasons for issuance shall be specific under Clayton antitrust act 72 Relief by, against loss and damage under Clayton antitrust act 71 To restrain rebates 58 Temporary — violations of Clayton antitrust act 71 Injured person, hurt in wreck, pass to 9-10 Injury : Accidents to persons, etc., to be reported 86 False statement of, by shipper 23 Initial carrier liable for, on through shipments 45 Inmates of hospitals, etc., passes to 9 Inquiry : Commission may institute, on its own motion 20, 27, 74 May be prosecuted by one or more Commissioners 37 Inspection : By carriers 98 Must be made, boiler-inspection act 96 Inspectors : Chief. (See also Chief inspector.) District. (See also District inspector.) Enforce safety-appliance acts 86 On medals of honor committee 89 One for each district, boiler-inspection act 97 Post-office, customs, and immigration, passes to 10 Shall not be interested in patented appliances 97 To investigate under medals of honor act 89 Instrumentalities : Allowance to person furnishing 32 Included in term "transportation" 8 Insular possessions, Clayton antitrust act, applicable to 62 Interchange : Of cars 8 Passes authorized 10, 46, 47 Telegraph business with Government-aided line 74 Traffic, between rail and water lines 20 Traffic, facilities for 12 Interchangeable tickets 47 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 64, 65 Interlocutory injunction, Commission's order 51,52 Intermediate railroad, through route to include 31 Intermediate rates, through rates in excess of 12 INDEX. 121 Interstate Commerce Commission: Page. Annual reports to Congress 46 Appointment of Commissioners 24 Approve — Examinations for district inspectors 97 Rules for boiler inspection 98 Authority to relieve, from fourth section 13 Bids for purchases between corporations to be supervised by 67 Carrier's agent's name filed in office of 49 Chief inspector shall make annual report to 99 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 78 Creation of 24 Designate appliances 83 District inspectors appointed by 97 Duty of— Accident-report act 87 Ash-pan act 93 Hours-of-service act 91, 92 Safety-appliance acts 85 Employees of 34, 36, 37, 44, 45 Enlargement of, provided for 48 Enumeration of powers not exclusive 32 Expenses, how paid 37 Final appeal to, boiler-inspection act 99 Information as" to violations of ash-pan act 93 Investigate accidents 86 Jurisdiction as to safety-appliance acts 85 May apply to court for enforcement of order 35 May determine elements of classification and form of valuation results 39 May determine its own procedure 36,37,39 May establish through routes and joint rates 30 May extend time for compliance — Safety-appliance acts 81, 84 Hours-of-service act 91 May grant rehearing 35 May institute inquiry on its own motion 27 May modify requirements of section 6 16-17 May order switch connection, if practicable 11 May order testimony taken by deposition 26 May prescribe division of joint rates 30 May prescribe maximum charges 29 May prescribe uniform system of accounts 42,43 May suspend and determine propriety of new rates 29 May suspend or modify its orders 34 Not more than four commissioners from same political party 48 Pecuniary interest of Commissioner 36 Prescribe form of accident reports 87 Production of books, papers, etc., before 25,54 Quorum, majority constitutes 36 122 INDEX. Interstate Commerce Commission — Continued. Page. Regulations for transportation of explosives 94 Remaining Commissioners to exercise all powers .. 25 Report and decisions to be published, etc 28 Reports of purchases by carriers to 67 Reports to Congress on physical valuation work 39 Salary of Commissioners 48 Term of office of Commissioners, seven years 36,48 To approve charges of Lake Erie & Ohio River Ship Canal 77 To determine question of competition between rail and water lines 14 To enforce compliance with Clayton antitrust act. where applicable to common carrier 68 To inquire into management of business 25 To investigate and report value of property of carriers 37 To investigate block-signal systems 101 Vacancies provided for 48 Valuation of carriers' property by 37 Violation of hours-of-service act 91 Interstate commerce defined 87 Interveners, proceedings before Commission or board under Clayton anti- trust act 68 Inventory of property of carriers 37 Investigation : Commission may institute, on its own motion 20, 27, 74 Commission to investigate practicability, etc., for switch connection. 11 Commission's power to investigate accidents 86 Defective boiler accidents 100 In such manner and by such means as it shall deem proper 27 Medals-of-honor committee may conduct 90 Of new schedules 29 Physical valuation of property 37 To determine question of competition between rail and water carrier. 14 Investment, acquiring stock for purposes of, not prohibited 63 Irreparable damage, issuance of temporary restraining order without no- tice against, under Clayton antitrust act 72 Joint classification, Commission may establish 29,30 Joint interchangeable 5,000-mile tickets, issuance of 47 Joint plaintiffs may sue joint defendants in courts on awards of damages- 33 Joint rates : Between rail aud 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 discrimination 24 Judges, no successors to, of former Commerce Court 50 Judgment, joint suit, recovery against defendant found liable 34 Judicial notice, Commission's seal 36 INDEX. 123 Jurisdiction (see also Interstate Commerce Commission) : Page. Circuit and district courts for writ of mandamus 47 Circuit court of appeals — For enforcement of, under Claytou antitrust act 69 Under Clayton antitrust act, exclusive 70 Commerce Court transferred to district courts 50 District courts — For violation of act 22 To restrain violations of Clayton antitrust act 70 Offenses under pass provision 10 State and Federal courts, Clayton antitrust act 66 Traffic through Panama Canal 19 Just and reasonable charges 8 Justification of switch connection, Commission to investigate 11 Laboratory samples under explosive act 94 Ladders, cars must be equipped with 83 Lake Erie & Ohio River Ship Canal act 77 Land grants: Allowances and concession in consideration of 39 Value of 39 Lands of carriers, valuation of 38 Lateral line, application of, for switch connection 11 Lease: Conditioned upon lessee not to deal with competitor, unlawful 62 On competing water line, railroad not to have 13-14 Leased line included in term "railroad" 8 Legal rate, rate filed held to be 57 Legislation, recommendation for additional 46 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 84 Exempting carrier from 45 Existing, not affected 50 Initial line for damage 45 Liens of Government on Government-aided telegraph lines 74 Life saving on railroads 88 Limitations : Complaints for the recovery of damages filed within two years 33 One year for enforcement of order for payment of money 33 Six years in rebate cases 58 Limitation of actions, hours-of-service act 91 Limitation of liability of carrier 45 Linemen of telegraph and telephone companies, passes to 9-10 Live stock: Hauling defective cars by chains permitted 85 Necessary caretakers, passes to 9-10 Loading explosives, Commission to regulate 94 124 INDEX. Page. Local rates, through rate in excess of combination of 12 Locomotives (see also Ash-pan act; Boiler-inspection act) : Excepted from ash-pan act 93 Must be provided with ash pan 92 Power driving-wheel brakes 79 Long and short haul provision 12 Long commodities, brakes on cars used in haulini: 83 Loss and damages, injunctive relief against, under antitrust act 71 Mailable matter under parcel post 78 Mail Service, Railway, passes to employees 9-10 Management of business, Commission to inquire into 25 Mandamus : District courts to compel by compliance with valuation provision 41.42 Peremptory writ, when used 48 Remedy shall be cumulative 48 To compel carrier to comply with act 45,48,74 To compel furnishing of cars and movement of traffic 48 To enforce order of Commission against Government-aided lines 74 Manufactured products of timber excepted from commodities clause 11 Maps to be furnished to Commission by carriers 39 Marking explosives, Commission to regulate 94,95 Marking packages for transportation 9 Maximum rates and charges, Commission may prescribe 29 Medals of honor act 88,90 Applications for medals, with affidavits 89 Approval of President 90 Committee to consider affidavits 89 Design of medal 88,90 Expense provided for 88 Investigation by inspectors 90 Life-saving, medals for SS President to grant 88 Proof must be offered : 88 Regulations governing awards 89 Rosettes and ribbons 88 Memoranda : Commission's agents shall have access to 39 Form of, Commission may prescribe 44 Mileage : For witnesses 37 Tickets, issuance of, not prohibited 47 Military traffic, to be expedited in time of war 18 Milk, passes to necessary caretakers of 9-10 Ministers of religion, passes to 9,46 Minor children of deceased employees of carriers, passes to 10 Misdemeanor : Committed by corporation 56 Common carrier and officer purchasing, etc., without bids 67 Discrimination by Government-aided lines 75 Failure to publish rates 56 Failure to report accidents 86 INDEX. 125 Misdemeanor — Continued. p age . For carrier to permit transportation at less than regular rates 22 For disclosing information concerning shipments 32 Mutilation of records 44 Shipper inducing carrier to discriminate 24 To give or receive rebates 56 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 60 Monopolies, Clayton antitrust act 62 Monopoly, acquisition of stock of competitor, prohibited 63 Monthly reports of accidents act. (See Accidents report act.) Monthly reports of earnings and expenses 43 Motion, Commission may institute inquiry on its own 20,27,74 Municipal government : Complaint by 27 Free or reduced rates for 46 Subsidy or donation from, to carriers 38-39 Munitions of war for military and naval forces, explosives act 94 Mutilation of records of carrier, misdemeanor 44 Mutual savings bank, directors and officers in 65 National homes for soldiers, passes to inmates of 9,46 Natural persons, immunity extends only to 55 Necessary agents, passes to 9,46 Net earning, valuation report shall show 38 Newsboys on trains, passes to 9-10 Nitroglycerin under explosives act 94 Notice : Change in rates by Lake Erie & Ohio River Ship Canal 78 Change of joint rates 16 Interlocutory injunction, application for 51 Issuance of temporary restraining order without, under Clayton anti- trust act 71 Preliminary, not to issue without notice under Clayton Act 71 Service on Washington agents 49 Taking deposition 26 To be given on completion of valuation of carriers 40 Nurses attending persons injured in wrecks, passes to 9-10 Oaths and affirmations, any member of Commission may administer 36 Oath: Accident investigations 87 Annual report of carrier, how taken 44 Annual reports of carriers to be under 43 Special agents or examiners, power to administer 37,45 126 INDEX. Offense : Page. Each day of agreement for pooling, etc.. separate 13 Each day separate, for failure to obey order under section 34 Office, principal : Of carrier, venue of suit 33,34,51 Of Commission in Washington 37 Officer : Bank, eligibility of 64 Carrier prohibited from making purchases with another corporation having same 66 Embezzlement of funds by, of common carrier ,. 66 In more than one bank whei*e entire stock is owned by the other 65 In more than one bank, prohibited 64 Liability for violation of act- 22 Of carrier, passes to 9,46,47 Private bank and bank organized under United States laws 65 Offices and supplies. Commission shall hire and procure 37 Offices of chief and district inspectors 97 Official act, entered of record 36 Official seal, Commission shall have 36 Offset against regular charges prohibited 57,58 Oil locomotives excepted from ash-pan act •_ 93 Oil, transportation, subject to act 7 Operating reports, accidents not reported in 86 Operation : Government-aided lines 73 Of competing water line by railroad 13-14 Operator, period of duty, hours of service act 91 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 _ 69 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 51 Enforcement of physical connection, Panama Canal 20 Enforcement of order for payment of money 33 Failure to comply with 18 Mandamus to enforce against Government-aided lines 74 May be modified under Clayton antitrust act 68 Payment of money , 28 Prescribing maximum charges 29 Procedure, petition for, from enforcement of order under Clayton antitrust act 70 Report in writing stating 28 Restraining, reasons for issuance, shall be specific under Clayton antitrust act 72 Service of Commission's on agent in Washington 34 Shall continue in force two years 29 Shall take effect within reasonable time for payment ofc,money 29 Supplemental orders 29 INDEX. 127 Orders — Continued. Page. Suspension or annulment 41,51,52 Switch connection, enforcement of 11 Temporary restraining, issuance of, without notice, under Clayton antitrust act 71 To be issued where violation of antitrust act 6S Under Clayton Act does not relieve from antitrust acts 70 Organizations, complaint to Commission by 27 Original cost, valuation report shall show 38 Orphan homes for soldiers and sailors, passes to inmates of 46 Ownership : Cars, facilities, etc 8 Of competing water line, by railroad 13-14 Packages containing explosives shall be marked 95 Packing explosives, Commission to regulate 94 Packing property for transportation 9 Panama Canal : Jurisdiction over traffic through 19 Railroad not to have interest in competing water carrier 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 53 Commission may require production of 25,39 Courts may compel the production of 25, 59 No person excused from producing 54 Parcel post 78 Parties : Complaints to Commission . 27 Injunction and restraining order under Clayton antitrust act 72 Interested, may appeal from enforcement of order under Clayton antitrust act 69 Interest, under Elkins Act 58 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 71 Notice to, of tentative valuation 40 Shall be furnished with copy of report 28 Passengers and property from connecting line 12 Passenger railways, street electric, through route and joint rate with 30 Passenger vehicles, explosives act 93, 94 Passes : Interchange of 10 Prohibited and exceptions 9,46 Patents, no inspector shall be interested in 97 Pecuniary interest in proceeding, commissioner shall not participate 36 Penalty : Accidents report act 86 Ash-pan act 92 Boiler-inspection act 100 Common carrier and officer purchasing, etc., without bids 67 128 INDEX. Penalty — Continued. Page. Compulsory testimony act 54 Corporation subject to 56 Disclosing information concerning shipments 32 Discrimination by Government-aided lines 75 Each day separate offense 14 Embezzlement by president, etc., of common carrier 66 Examiner subject to, who divulges information 45 Explosives act 95 Failure of carrier to file annual report 43 Failure of Government-aided lines to file annual reports 76 Failure to comply with regulations or order of Commission 18 Failure to obey order under section 15 34 Failure to publish rates, Elkins Act 56 False billing, etc., by carrier 22 Falsifying record, etc 44 Greater or less compensation than published tariffs 47,56 Hours of service act 91 Inducing carrier to discriminate 24 Misstatement of rate in writing 18 No exemption from antitrust laws by enactment of Clayton Act 64 No person testifying subject to, in certain cases 21, 26, 54, 55, 59 Obtaining less than regular rates by fraud 23 Of imprisonment shall not apply to artificial persons 23 Preventing bidding or competition among bidders 67 Refusal to comply with order of court 26 Refusal to testify 54 Safety-appliance acts 80, 82, 84, 85 Violation of act 22 Violation of valuation provisions 41 Violating pass provision 10 Pending cases not impaired or affected 48,49,60 Pensioned employees, passes to 10 Percentage of power brakes 82 Peremptory mandamus when question of compensation raised 48 Perishable freight, chains may be used in hauling 85 Perjury may be punished 54 Personal baggage 9 Personal inspection of boilers 98 Persons, injured in wrecks 9-10 Pestilence, carrying passengers free in case of 10 Petition : Complaints to Commission by 27 Shall state facts briefly 27 Physical connection : Between lines of rail carrier aud docks of water carrier 19 With lateral branch line or private sidetrack 11 Physicians : Attending to persons injured in wi-ecks, 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 INDEX. 129 Page. Political party, number of Commissioners from same 48 Pooling of freights and division of earnings forbidden im- port of entry or transshipment 7 Ports, proportional rates to and from 20 Posting: Name of carrier's agent . — 18-19 Schedules 15 Schedules of Lake Erie & Ohio River Ship Canal 77 Service by, in office of Commission's secretary 49 Postmaster General, authority of, not impaired 77 Post-office inspector, passes to 9-10 Poultry, necessary caretaker, passes to__ 9-1Q Powers : And duties of Commission 25 Enumeration of, not exclusive 32 Power brakes must be provided 82 Practices : Commission may prescribe reasonable, for carriers 28-29 Commission may prescribe rules of 36 Of carrier, must be just and reasonable 9 Practicability of switch connection. Commission to investigate 11 Preference : Military traffic in time of war_' 18 Unreasonable, unlawful 12 Prejudice, unreasonable, unlawful 12 Presenting property for transportation, regulations affecting '.» President : Appoint chief inspector and two assistants . 96 Approve medals-of-honor committee report 90 Authorized to issue medals of honor 8S May remove Commissioner 24 To appoint Commissioner 48 Press messages 8-9 Prices, no discrimination iu. by persons engaged in commerce 62 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 51 Principal office of Commission in Washington :>" Printed for distribution, annual reports 28 Printing schedules 15 Private: Banker, director, etc., in bank organized under United States laws — _ 65 Car service 8, 32 Docks, switch connection to 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 15-16 66170°— 14 '.J 130 INDEX. Procedure : Page. Appeal from enforcement of order under Clayton antitrust act 70 Circuit court of appeals, enforcement of order under Clayton Act 69 Commission may determine its own 36,37 District courts, suits to enforce or set aside orders 51 Investigating complaint under Clayton antitrust act 68 To restrain violations of Clayton antitrust act 71 Process : Service of. complaints, etc., under Clayton antitrust act 70 Service of, where defendant carrier has its principal office 34 Service on Washington agents 49 Production : Books and papers, action for damages 21 Books, papers, tariffs, etc 25.54 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, medal s-of -honor act 88 Property of carriers: Commission's agents shall have access to 39 Held for other than common carrier purposes, valuation 38 Report of ownership of Government-aided lines 76 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 66 Proper district for 57 Protest : Of valuation 40 On Commission's valuation of carriers 40 Proxies, acquisition of stock and_voting by competitor, prohibited 63 Public : Inspection of records and data 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 77 Published rates : Failure to publish rate a misdemeanor 56 Must prevail , 57 Purchases: Carrier prohibited from making, with another corporation having same officers --- 66 Reports of, to be made to Commission 67 Qualification of Commissioners 24,46,48 Quorum, majority of Commissioners for transaction of business 36 Quotation of rates in writing, when to be furnished 18 INDEX. 131 Railroad : Page. Government-aided 73 State, commissioners, complaints by 27 Subject to act, when 7 Young Men's Christian Association, puss to traveling secretary 9 Railroad defined 8 Boiler-inspection act 96 Hours-of-service act 90 Railway Mail Service, employees, passes to 9-10 Rates : Annual report of carrier concerning 43 Device to avoid regular : 22.2:; Filed or participated in, deemed legal 57 Filing and posting 15-16 Government-aided lines 73 Just and reasonable 8.29 Lake Erie & Ohio River Ship Canal 77 Less, for longer than shorter haul 12 Maximum, Commission may prescribe 20 New, Commission may determine propriety 29 Proportional, to and from ports _ 20 Public records, rates filed with Commission are 35 Published, to be strictly observed 17 Regulations, reasonable, affecting 9,15-16 Rules, reasonable, affecting 15-10 Suspension of, by Commission 29-30 Unduly preferential or prejudicial 12 Unless filed, carrier not to transport 17 Written statement of IS Real property, valuation of " 38 Renrgument, equal division of opinion under expediting act 61 Reasonable charges : Burden of proof 30 Commission to determine reasonableness 29 Lake Erie & Ohio River Ship Canal 77 Must be 8 Order of Commission prescribing 29 Reasonable time, answer to complaint to be made in 27 Rebate : Injunction against 58 Lake Erie & Ohio River Ship Canal 77 Offering or soliciting, a crime 12,56 Penalty 22.56 Prohibited 1 12. 17. 57. 5S Receipts : Carrier shall issue 45 Exempting carrier from liability 45 False, by shipper, to obtain refund, etc 23 Reasonable regulations affecting 9 Receipt of property included in term " transportation " S 132 INDEX. Receivers: Page. Account of l 44 Included in ash-pan act 93 Penalty for violation of valuation provision 4] Receiving of property : For transportation ± :t Within one State not subject to act 7-8 Receiving passengers and property from connecting line 1:2 Recommendation for additional legislation - : 46 Records of carriers: Commission's agent to have access to ■".'•>. 44 Destruction of, Commission may permit 45 Form of. Commissi. til may prescribe 44 To be furnished to Commission '.','.) Records of Commission, public inspection of 40 Reduced rates, passes and exceptions 9,46 Reduction in rates: Commission may require 29 Lake Erie & Ohio River Ship Canal . 77 To meet competition of water route 13 Reexamination of defective boilers 99 Refrigeration services included in term "transportation" 8 Refund : False means by shipper to obtain 23 Of portion of tariff rate ! 17 Refusal to testify or produce documents 54 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's, failure to comply with 18 Commission may prescribe . 2S. 29 Commission's, to have full force of law 39-40 Commission to prescribe for transporting explosives 94 Governing award of medals 89 Rehearing: Application for. shall not excuse compliance with order 35 Commission may grant ! 35 Report and order under Clayton antitrust act. may be modified OS Rejection, tariffs may be rejected for filing IS Relief trains excepted, hours-of-service act 92 Remanding Commerce Court cases to district courts 53 Remedies: Civil, enactment of Clayton Act does not exempt antitrust laws 64 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 Slate court 40 Reorganization, valuation report on 38 Repair, defective cars may be hauled for__ 1 84 INDEX. 183 Reparation : Page. For injury 27 Report shall include findings of fact 28 Suits for 21, 33 Repeal : Antitrust law not repealed by Clayton Act 64 Of laws in conflict 54,60,77,87 Repeated messages 8 ~ 9 Reports : Accident, form of 8 » Chief inspector to make 160 False, of weight, by carrier or shipper 22-23 Not evidence .87-100 Reports of carriers: As to value of property, may be required 40 Carriers' engineer's reports to be furnished to Commission 39 Commission may require and prescribe method of making 42 Government-aided lines 7G Monthly, of earning and expenses 43 Purchases made to Commission 67 Special or periodical 43 Statistics in, are public records 35 To be filed by September 30 of each year 43 Under boiler-inspection act 99 Reports of Commission : Annual — Printed for distribution 28 To Congress 4 ^ Competent as evidence 28 Concerning valuation work 39,40 Must be entered of record and furnished parties 28 To Congress, block-signal systems 101 To Congress, on valuation of carriers 39,40 Under Clayton antitrust act to be in writing 6S 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 51 Restraining order: Reasons for issuance shall be specific under Clayton antitrust act___ 72 Temporary, issuance of, without notice, under Clayton Act 71 Restraints and monopolies, expedition of suits involving 60 Restraints in commerce, Clayton antitrust act 62 Retroactive : Amendments to act shall not be 47.49,50,60 Clayton Act not to be 64 Interlocking directorates 66 Return of cars 8 Revenue of carrier: Carrier's report of 42 Valuation report shall show earnings 38 Revenue trains, hauling defective cars by means of chains S.~> Reverse, Commission may. on rehearing, its orders 36 134 DEX. Page. Revision of valuation 1 40 Right of way: Commission's agents shall have access to 39 Valuation of 38 Risk : Employees shall not assume 81 .Must he assumed by carriers using defective appliances 84 Roll, false, by shipper, to obtain refund, etc '. 23 Rockets under explosives act ' . 94 Routing: Duty to observe routing instructions 31 Shipper may designate 31 Rules and instructions: Carriers shall file 97 Chief inspector to file if carriers fail .. 98 For district inspectors 98 May be changed 98 shall be approved by Commission 98 Rules of carrier : Commission may prescribe 28-29 Must be just and reasonable 8 To be printed and posted 15-16 Rules of Commission : Commission's rules to have full force of law 1__^ 39,40 Rules of procedure 36 Running boards, cars must be equipped with 83 Safety-appliance acts 79-86 Assumption of risk 81 Automatic couplers 79 Carriers subject to act 79, SI. 83 Cars of connecting lines refused 79 Chains, hauling by . 85 Commission to designate appliances 83 Compliance with act. time for 81, S4. 85 Defective cars may be hauled to nearest repair point 84 Drawbars 80, S4 Driving-wheel and train brakes 79 Enforcement by Commission 85 Exceptions SO, 82 Grab irons and handholds 80.83 Inspectors provided for 86 Ladders 83 Liability of carriers 84 Penalty for violation 80.82,84.85 Percentage of train-braked cars 82 Power brakes 82 Running boards, cars to be equipped with 83 Sill steps, cars to be equipped with 83 Sailors' homes, passes to inmates of 9,44,46 Salaries : Carriers' employees, annual report of carrier shall show 42 Commissioners' 36, 48 Commission's employees, annual repori of Commission shall show 46 INDEX. 135 Page. Sale, conditioned upon purchaser not to deal with competitor, unlawful— 62 Sample : Baggage 9 Explosives for laboratory examination 94 Satisfaction for complain) by carriers 27 Savings bank, mutual, directors and officers in 65 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 77 May be rejected '. 18 To be published 15 Unless filed, carrier not to transport 17 Seal of Commission, judicially noticed 36 Secretaries of railroad Young Men's Christian Association, passes to 9 Secretary of Commission : Commission shall appoint 36 Custody of records 35 Designation of Washington agents filed in office of 49 On medals of honor committee 89 Service of notice by posting in office of 49 Securities of carriers, valuation report shall show 38 Security, order of Commission to require 20 Senate : Appointment of boiler inspectors affirmed by 96 Appointment of Commissioners affirmed by 48 Service : Complaints, etc., under Clayton antitrust act 70 How made 49 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 49 When no Washington agent 49 Services, allowance to owner of property for rendering 32 Sessions of Commission may be held in any part of United States 37 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 56 When cars may be refused from 7ft Short haul, charging higher rates for, than for long haul 12 Short or branch lines, may be acquired by main lines 64 Side track, private, switch connection with 11 Signal devices under explosives act 94 Sill steps, cars must be equipped with _. — 83 Similar circumstances and conditions 12 136 INDEX. >ing-car companies: Page Common carriers S Passes to employees 9_10 Society, complaint to Commission by i 27 Soldiers' ami sailors' homes, passes to inmates of ;». .p; Special : Agents — Commission may employ 44,45 Penalty for divulging information 4". cases, application to relieve from fourth section 13 Kale, unlaw ful 12 Service, transportation of men ami stores for valuation service -J_ Spurs: Included iii term "railroad" 8 To dock of water line p.t Standard height of drawbars 80,81,84 State: Commission, cooperation with 87 Complaints by 27 Court- Jurisdiction of. to enforce order for payment of money :;:; Removal of suit under section 20 from 40 Governments, free or reduced rates for 40 Homes for disabled volunteer soldiers, passes to inmates of '.». 4t; Subsidy or donation from, to carrier 38. •';'.> Transportation not subject to act 7-8 Statement, false, by shipper, fraud, a misdemeanor X S.\ Stations, freight, included in term "railroad" 8 Statistics : Annual report of carrier shall show 4:; In report to Commission are public records Steps, sill, cars must be ecpiipped with 83 Stock : Acquisition of competitor, prohibited 63 Commissioners shall not own, of carrier 24 Railroad 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 Storage: Charges to be printed and filed L5-16 Included in term "transportation" 8 Regulations affecting 9 Within one Slate not subject to act 7-8 Street: Electric passenger railways, no through route and join! rate with 30 Railways excepted from safety-appliance acts ! 82 Subpoenas : Commission may require attendance of witness by 25 Duces tecum 54 Parties may be summoned before court under. Clayton Act 71 Signed by any member of Commission 30, 54 INDEX. 137 Subpoenas— Continued. Page. Witnesses — Accident investigations : s ~ Block-signal investigations 101 Subsidiary corporations, formation of, not prohibited 63 Subsidies: Land-grants, etc., to railroad and telegraph companies. - 7."; Valuation report to show 38 Suits : Courts or complaint to Commission for damages 21 Order of Commission — Expedition of : 52, 58 Jurisdiction HI Removal from .State court of, under section 20 46 Sherman Act to be expedited 60 Venue - 51 Superannuated employees of carriers, passes to 10 Supplemental order, prescribing proportions of joint rates 20 Supplies, carriers prohibited from making purchases with another cor- poration having same officer 66 Supreme Court : Appeal from suspension or annulment of Commission's order 52 Appeal to, under expediting act 61,62 Remanding Commerce Court cases to district courts 53 Surgeons in employ of carriers, passes to !>-10 Surplus fund, annual report of carrier shall show 42 Suspension of new rates by Commission 20-30 Suspension of orders : By Commission 34 By the courts 52 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 20 Commission may require production of 2. r » Failure to publish a misdemeanor 56 Filed with Commission are public records ."..". Filing and publishing 15 Form of, carrier may prescribe 17 Joint, must specify names of participating carriers 17 May be rejected 18 No person excused from producing _ r>4 Rates to be strictly observed 17 Unless filed, carriers not to transport 17 Telegraph and telephone operators, hours-of-service act 01 Telegraph companies: Charges shall be just and reasonable 8 Exchange of passes or franks with common carrier 10 Exchange of services with common carrier 9 138 INDEX. Telegraph companies— Continued. Page Government-aided 7g Linemen of, passes to 9-10 Messages, classification of 8 Subject to act 7 Telephone companies : Charges shall be just and reasonable 8 Exchange of passes or franks witb common carrier 10 Exchange of services with common carrier 9 Linemen of. passes to 9-10 Messages, classification of 8 Subject to act • 7 Telegraph line connecting with Government-:! ided line 73 Temporary injunction, violations of Clayton antitrust act 71 Temporary restraining order, issuance of, without notice, under Clayton antitrust act . 71 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 : Ash-pan act 92 Boiler-inspection act 97 Safety-appliance act 81 Testifying, no person excused from 54 Testimony : Accident, investigations 87 Agents or examiners 45 Compulsory act 54. 55 Immunity of witness in action for damage 21 Proceeding before Commission or board to be reduced to writing 68 Through bill of lading, carrier shall issue 31,45 Through rates in excess of combination of local rates 12 Through routes : Between rail and water carrier to foreign country v ; i Panama Canal- 20 Carrier to establish 8 Commission may establish 30 Entire length of railroad 31 Greater compensation than aggregate of intermediates 12 Rail 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 45 Tickets : Commutation, excursion, and mileage 1 46 Interchangeable mileage 47 Issuance, form, and substauce 9 Time schedule, change of 21 INDEX. 139 Page. Tolls, Lake Erie & Ohio River Ship Canal _______.._. 77 Torpedoes under explosives act 94 Tracks : Included in term "railroad" 8 To dock of water carrier 19 Use of, by another carrier 12 Traffic, writ of mandamus to compel movement of : 48 Train brakes: Cars must be equipped with 79 Percentage of cars in train 82 Transfer in transit included in term "transportation" '. 8 Transport, traffic, writ of mandamus to compel carrier to 48 Transportation : Duty 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 93-95 Exceptions of provisions 94 Explosives not to be carried 94 Marking packages 95 Passenger vehicles 93 Penalty for violation : 95 Regulations affecting 94 Transshipment, port of 7 Traveling expenses, boiler-inspection act 97 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- 64 Trustees, operating, penalty for violation of valuation provisions 41 Ultra vires contracts of Government-aided lines 75 Undue discrimination, induced by shipper, misdemeanor 24 Undue or unreasonable preference or advantage forbidden 12 Undue or unreasonable prejudice or disadvantage forbidden 12 Uniform system of accounts, Commission may prescribe 42-43 Unjust discrimination, defined and forbidden 12 United States : Forfeitures payable into Treasury 34 Free or reduced rates for 46 Petition for injunction under Clayton antitrust act 71 Subsidy or donation from, to carriers 38,39 United States Board of Mediation and Conciliation, transfer of Com- merce Court property to 53 Unlawful discrimination, fine or imprisonment 22 Unrepeated 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 40 140 INDEX. Valuation of carriers — Continued. Page. Final prima facie evidence 41 Grants from United States to show 38 Methods and procedure to lie prescribed by Commission 39 Penalty for viblation of provisions 41 Reports to Congress __ 39,40 To whom notice shall be given niton completion 40 Valuation of carriers' property: Analysis of methods to be reported 3S By Commission 37 Changes in. carriers required to make report 40 Experts for work, Commission may employ 37 Final- Effect 1 __ 41 If no protest filed within 30 days 40 May be modified or rescinded. 41 Reports to Congress 40 Revision or correction 40 Tentative 40 What valuation reports shall show 37 Value : 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, includes in term "transportation" 8 Ventilation included in tenn "transportation" 8 Venue, suit to enforce or set aside orders 51 Vessels, railroad not to have interest in competing 13-14 Violation of act, misdemeanor 22 Vocation, Commissioners shall have no other 2-1-25 Vote of Commission entered of record 36 Vouchers : Approved by chairman ."57 False, by shipper to obtain refund, etc 23 War, preference to military traffic 18 Washington agent : Carrier shall designate 49 Service of order on 34 Water line : Common control, etc., with rail line 7 Interchange of traffic with rail line 20 Physical connection with rail line 19 Railroad not have interest in competing.. ._ 13-14 Rates to he filed with Commission, when 14 Reduction in rail rates to meet competition of 13 Subject to act, when ' 7 Through route and joint rate . . 20.30,33 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 INDEX. ] 4 i l'age. Weight, limit under parcel post 78 Widows of carrier's employees, passes to 10 Wireless cable companies 7 Witnesses: All existing laws relating to, to apply under this act— 4'.t Commission may require attendance of 25 Courts may compel attendance of _•">. 59 Courts ma\ compel production of books, etc _ _ 59 Evidence may criminate, shall uot excuse 21,26,59 Fees 27, :iT Immunity of _. ."..nit Immunity of, in action for damages 21 May be subpoenaed in accident investigations ST Mileage .. -">7 Passes to .__ 9-10 Special agents or examiners. of Commission may examine 45 Subpoenas for, block-signal investigations , . 101 W recking trains excepted, hours-of -service act 92 Wrecks, passes to persons injured in; also physicians and nurses 9-10 Yards included in term "railroad" 8 Young Men's Christian Association, traveling secretaries of railroad, passes to T — 9 Zones under parcel post, consent of Commission to change 78 o 'ik K- /neb % uNivEHsirv of illinois-urSanT 30112068222832