SCHOOL OF LAW
SHIPPERS AND CARRIERS
INTERSTATE AND INTRASTATE FREIGHT
SHIPPERS AND CARRIERS
INTERSTATE AND INTRASTATE
EDGAR WATKINS, LL. B.
Of thk Atlanta Bar
THE HARRISON COMPANY
Law Book Publishers
Copyright 1909 and 1916
2' /f- a>^
No branch of the law is more important than that relating to
the rights and duties of shippers and carriers, and no branch of
the law is less generally known. The purpose of this book is to
assist those who may be called upon to advise as to such rights
and duties to an understanding of this interesting phase of the
^ In approaching the subject the experience of an active practi-
*^ tioner was drawn upon to determine what would be most use-
elseif (getClientWidth() > 430)
ful, not only to the legal profession, but to traffic men, whether
•^ in the employ of the carriers or of those bureaus organized
throughout the country to aid and advise shippers.
^ From this experience, it was thought that where the state of
"~~ the authorities justified, the law should be given as nearly as
might be in the language of the courts of final authority. For
this reason, where questions have been definitely determined, lib-
eral quotations have been inserted.
Many questions, however, aflfecting the subject of this book
have not yet been settled. Where this is true, the opinions of
the federal courts, the Interstate Commerce Commission and
state courts, have been referred to and discussed. In this way
it has been sought to deduce the principles of the law.
The Act to Regulate Commerce has been annotated, not only
with the decisions of the courts, but also with the opinions of the
Interstate Commerce Commission. This will enable one desiring
to investigate a particular provision of that act to trace the con-
struction thereof by the references which have been made thereto
by the tribunals whose duty it is to enforce this great statute.
The Sherman and Clayton Anti-Trust Statutes, the Twenty-
Eight Hour Law, and other acts affecting the question are cited
and discussed in so far as they relate to the subject under
investigation. Statutes such as the Safety Appliance x\cts, the
Employers' Liability Act, the Hours of Service Act, the Federal
Trade Commission and Anti-Trust Acts, and other acts, a knowl-
edge of which is necessary to those who, as practitioners or other-
wise have to do with the enforcement of those laws, or are
required to advise or act with reference thereto, are inserted.
Because the conference ruhngs of the Interstate Commerce
Commission are of such general use and ,are not always avail-
able, and adopting the suggestions of lawyers and traffic of-
ficials familiar with the practice before the Commission, these
conference rulings have been copied following the appendices.
While few lawyers have given special attention to the ques-
tions here discussed, the widening scope of interstate commerce
makes it necessary that all practitioners shall be ready to advise
clients as to their rights and liabilities growing out of the law
relating to transportation.
Claims for overcharge, for loss and for damage on shipments
moving from one state to another arise in the business of most
manufacturers, jobbers and merchants. The law fixing the rights
growing out of such shipments is found in the statutes and de-
cisions of the Federal Government. To make the Laws more
easily available and understandable is the purpose of this work.
With what success that purpose has been effected must be deter-
mined by those who may make use of what is herein set down.
Intrastate transportation is so closely related to that which is
interstate, that a new chapter has been added, in which is dis-
cussed intrastate transportation in so far as it affects directly or
indirectly the principal subject of the book. The author desires
to acknowledge the valuable assistance of ]\lr. Henry B. Amies,
who has assisted in revising the manuscript.
W'ashington, D. C, October, 1915.
TABLE OF CONTENTS.
STATE REGULATION OF CARRIERS ENGAGED IN INTER-
§ 1. Scope of Chapter.
2. Interstate Commerce Defined.
3. Power of Congress Exclusive, When.
4. Power of the States Indirectly to Affect Interstate Com-
5. Commerce Exclusively Within the Control of the States.
6. All Commerce Subject to Regulation.
7. Eminent Domain.
8. States May Establish Means for Interstate Transportation.
9. Regulation of Facilities — Depots.
10. Regulation of Facilities — Terminal Roads.
11. State Laws Forbidding the Consolidation of Competing Car-
12. Regulation of Facilities — Spur Tracks.
13. Requiring Physical Connections Between Carriers.
14. Delivery over Connecting Tracks.
15. Regulating Crossings.
16. Elevator Charges.
17. Through Routes and Joint Rates.
18. Regulation of the Movement of Trains. Sunday Law.
19. Same Sul)ject. Requiring the Operation of a Particular Train.
20. Same Subject. Speed of Trains.
21. Same Subject. Requirement That Trains Shall Stop at Par-
22. State Regulation of Carriers and Their Employees.
23. Blowing Whistle and Checking Speed at Crossings.
24. Furnishing Cars for the Receipt and Delivery of Shipments.
25. Same Subject. Rule Since Hepburn Act.
26. Same Subject. Rule Established.
27. Requirements as to Accounting and Reports.
28. Transmission and Delivery of Telegraph and Telephone Mes-
29. Separate Coach Laws.
30. Posting Time of Trains.
31. Laws to Promote the Security and Comfort of Passengers.
32. Laws Limiting or Enlarging the Common Liability of Carriers.
33. Same Subject. Liability to Employees.
34. Same Subject. Liability for Loss or Damage to Shipments.
VIII Table of Contents
35. Penalties for Failure to Pay Claim.
36. Requiring Railroads to Perform Transportation Service.
37. Sale and Regulation of Passenger Tickets.
38. Same Subject. Mileage Books.
39. Free Transportation.
40. Routing Freight.
41. When Interstate Transportation Begins and Ends.
42. Attachments and Garnishments.
44. Intrastate Rates Which Affect Interstate Rates.
45. Limitations on the Power of States to Regulate Intrastate
46. Property Basis for Returns.
47. When Does a Rate Violate Rights under the Fourteenth
48. Rates. Evidence That a Rate Is Confiscatory. Rates on a
49. Same Subject. Relative Cost of Different Kinds of Trans-
50. Testing a Rate by Use to Determine Whether or Not It Is
51. Issuance of Stocks and Bonds.
52. Long and Short Haul.
55. Regulating Charges for Transportation by Water.
56. Regulating Pilotage, Ports, Harbors and Vessels.
57. Boards of Trade and Exchanges.
58. Inspection. Quarantine, Game, Food. Liquor, and Lottery
59. Taxation, Including License Taxes.
60. Procedure to Test the \'alidity of State Regulations.
VALIDITY AND SCOPE OF THE ACT TO REGULATE
§ 61. Common Law Obligations of Common Carriers.
62. Power of Congress over Interstate Commerce.
63. Constitutionality of the Act to Regulate Commerce.
64. Reasons for the Act to Regulate Commerce.
65. Carriers Included in the Act.
66. Carriers' Duties under the Act.
67. What Transportation Included in the Act.
68. Transportation Included in the Act, continued.
69. Same Subject.
70. Powers and Procedure of the Interstate Commerce Commission.
71. Same Subject.
Table of Contents ix
72. Switch Connections.
73. Damages and Penalties for Misquoting a Rate.
75. Investigations by the Interstate Commerce Commission.
76. Additional Power Given the Interstate Commerce Commis-
77. Commission May Suspend an Advance in Rates.
78. Reports of Carriers.
79. Court Procedure with Reference to the Orders of the Com-
ALL CHARGES FOR SERVICES RENDERED BY COMMON
CARRIERS IN THE TRANSPORTATION OF PERSONS
OR PROPERTY OR IN CONNECTION THERE-
WITH MUST BE JUST AND
§ 80. All Charges Must Be Reasonable.
82. Cost of Carrier's Equipment.
83. Cost of Carrier's Equipment. What Is a Reasonable Return.
84. Same Subject. Difficulties in Determining the Question.
85. Cost of Service
86. Cost. When Carrier's Duty to Furnish Service.
87. Cost of Service, Continued.
88. Value of Service.
89. Same Subject. Use to Which Commodity Put.
90. Value of the Commodity, Its General Utility and Danger of
91. Value of the Commoditj-. Difference Between the Raw and
the Manufactured Product.
92. Competition or Its Absence Considered in Determining
93. Same Subject.
94. Same Subject. Rule Since 1910.
95. Same Subject. Conclusion.
96. Rates Affected by Amount of Tonnage.
97. Same Subject. Limitations on Rule.
98. Density of Traffic.
99. Distance and Rate per Ton Mile.
100. General Business Conditions.
103. Rates Long in Existence Are Presumed to Be Reasonable.
103. Same Subject.
104. Voluntary Reduction of Rates.
105. Same Subject. Act June 18, 1910.
Table of Contents
106. Grouping Territory and Giving Each Group Same Rate Le-
gal under Some Circumstances.
107. Grouping Producing Points and Making Zones Taking Same
108. Basing Point System.
109. Same Subject. Breaking Rates.
110. Comparison Between Different Lines as a Aleans of Deter-
mining Correct Rate.
111. Car Load and Less than Car Load Movements as Affecting
112. Establishing Car Load Rates.
113. Same Subject. Rule in Duncan Case Criticised.
114. Same Subject. Proper Differential Between Rates on Car
Load and Less than Car Load Freight.
115. Car Load Minima.
116. Train Load Rates.
117. Relation of Through Rates to the Sum of Local Rates.
118. Proportional Rates.
119. Through Rate Must Not Exceed Aggregate of Intermedi-
120. Through Routes and Joint Rates.
121. Same Subject. Amendments of 1910 and 1912.
122. Rates on Commodities Requiring Refrigeration.
123. Rates on Returned Shipments.
124. The Public Interest Must Be Considered in Making Rates.
125. General Principles Applicable to the Question. What Is a
126. Same Subject. Some Statements of the Commission as to
Such General Principles.
127. Same Subject. Illustrative Cases.
128. Same Subject. Discussion of Principles in Chicago Live
Stock Exchange Case.
129. Same Subject. Rate Considered in and of Itself.
130. Same Subject. Commission Not Bound by Technical Rules.
131. Same Subject. Summary.
EQUALITY IN RATES.
§ 132. Scope of Chapter.
133. Common Law as to Equality in Rates by Carriers.
134. Same Subject. Damages.
135. Comparison of the English Railway and Canal Act with the
Act to Regulate Commerce.
136. Discrimination Forbidden.
137. Discrimination against Individuals.
138. Same Subject.
139. Same Subject. Construction by the Commission.
Table of Contents xi
140. Same Subject. Allowances to Shippers.
141. Trap Car Service.
142. Peddler Cars.
143. Car Spotting.
144. Undue Preferences in Favor of Persons or Localities.
145. Same Subject. Application of Section Made by the Com-
146. Discrimination Against Traffic.
147. Same Subject. Discrimination Beyond the Control of the
148. Facilities for Interchange of Traffic and Rates and Charges to
Connecting Lines Must Be without Undue or Unreason-
149. Same Subject. Statute.
150. Same Subject. Statute and Proviso.
151. Through Routes and Joint Rates.
152. Discrimination by Charging More for a Shorter Than a
153. Long and Short Haul. Old Law Construed. Definite Con-
154. Long and Short Haul Clause under Act of 1910.
155. Fourth Section. Relationship Between Through Rates and
156. Discrimination Between Car Loads and Less than Car Loads.
157. Bulked Shipments.
158. Car Loads, Ownership of.
159. Train Loads.
160. Classification of Commodities Should Be without Discrimi-
161. Uniform Classification.
162. Power of the Commission over Classification.
163. Milling in Transit.
165. Rebilling — Found Illegal.
166. Rebilling Illegal Only When Unjustly Discriminatory.
167. Rebilling. Conclusion.
168. Payments to Elevators.
169. Transit Privileges — Generally.
170. Allowances to Tap Line Railroads.
171. Allowances to Industrial Tracks.
172. Illegal for Carriers to Transport Commodities Produced or
Owned by Them or in Which They Are Interested.
173. Commodities Clause of Act of 1906.
174. Cars Must Be Furnished without Discrimination.
175. Same Subject. Principles Applied by the Commission.
176. Freight Charges Must Be Collected without Discrimination.
177. Right of Carrier to Route Shipments Beyond Its Own Ter-
178. Discrimination in Billing.
XII Table of Contents
179. Tariffs of Rates Must Be Printed, Posted and Maintained.
180. Same Subject. Misquoting Rates.
181. Different Rates over the Same Line in Opposite Directions.
182. Discrimination by Granting Free Service.
183. Basing Points, Group Rates and Zone Rates.
184. How Far a Rate Made by a State Relieves a Carrier from
the Duty to Serve Communities with Legal Equality.
185. Commutation, Mileage and Party Rate Tickets.
187. Same Subject. Corporation Punishable.
ENFORCEMENT BY THE COMMISSION OF THE ACT TO
§ 189. General Statement of the Functions of the Interstate Com-
190. Appointment and General Duties of the Commission.
191. Switch Connections. Duty of Carriers.
192. Switch Connections. Powers of the Commission.
193. Industrial Switches and Railways.
194. Switch Connections with Carriers by Water.
195. Through Routes.
196. Division of Joint Rates.
197. Allowances to Shippers for Services and Facilities.
198. Distribution of Cars.
199. Long and Short Haul Provisions, History of.
200. Relationship of Intermediate and Through Rates.
201. Water Competition.
202. Power of the Commission under the Fourth Section.
203. Ownership of Water Carriers by Railroads.
204. The Commission's Duties with Reference to Schedules of
20G. Damages — Power of the Commission to Make Award of.
207. Awards of Damages for Charging an Unjust and Unreason-
208. Awards of Damages for Unlawful Discrimination.
209. Damages under the Fourth Section.
210. Damages for Misrouting.
211. Damages — General Statement.
212. Damages for Misquoting a Rate.
213. Damages, to Whom Paid.
214. Damages, by Whom Paid.
215. Damages — Protest Unnecessary.
216. Damages — Interest and Attorney's Fees.
217. Award of Damages an Inadequate Remedy.
Table of Contents xiii
218. Damages, Limitation on Complaint for.
219. General Investigation by the Commission.
220. Same Subject. Amendment of 1910.
221. Commission May Ask the Aid of the Courts to Enforce the
222. Commission Has Power to Prescribe Rates for the Future.
223. Suspension of Rates, Regulations and Practice.
224. Through Routes and Joint Rates.
225. Allowances for Services or Instrumentalities.
226. Powers Enumerated, Not Exclude Others.
227. Effect of Commission's Orders.
228. Commission's Control Over Its Orders.
229. Commission May Employ Attorne}'S.
230. Records of Commission.
231. Valuation of Railroad Property.
232. Valuation, How Made.
233. Finality and Effect of Valuation.
234. Office of Commission.
235. Annual Reports from Carriers.
237. Reports by the Commission.
238. Lake Erie and Ohio River Ship Canal.
239. Parcel Post.
240. Government Aided Railroads and Telegraph Companies.
241. Common Law Remedies.
PROCEDURE OF THE INTERSTATE COMMERCE COMMIS-
§ 242. Scope of Chapter.
243. Switch Connections.
244. Relief under the Fourth Section.
245. Water Competition.
246. Railroad Owned Steamships.
247. Changes in Tariffs.
248. Forms of Tariffs.
249. Through Routes.
250. Complaints for Damages.
251. Same Subject — Order of Commission.
252. General Investigations.
253. Procedure in Formal Cases — Complaint.
254: Notice before Hearing. *
255. Formal Complaints — Answer.
256. Hearings by the Commission.
257. Orders Relating to Rates and Practices.
258. Suspension of Rates.
XIV Table of Contents
259. Practices in Suspension Cases Where There Exist Intrastate
Rates Lower than Proposed Increased Interstate Rates.
2C0. The Weak and the Strong Roads.
261. Other Orders.
262. Service of Orders of the Commission.
263. Rehearings by the Commission.
264. Valuation of Property.
265. Oral Argument.
266. Estoppel by Former Order of the Commission.
267. Rules of Procedure Prescribed by the Commission.
268. Sessions of the Commission to Be Public — Its Ofifices in
272. Motion to Dismiss in the Nature of a Demurrer.
273. Service of Papers.
274. Amendment to. Pleadings.
276. Stipulations Desirable and Must Be in Writing.
278. Depositions, How Taken.
279. Attendance of Witnesses.
280. Documentary Evidence.
281. Briefs and Oral Argument.
283. Free Copies of Transcript of Evidence, When Furnished.
284. Orders Must Be Complied with and Notice Thereof Given to
the Secretary of the Commission.
285. Fourth Section Applications.
286. Suspension of Rate Increases, How Obtained.
287. Secretary to Give Information.
288. Address of the Commission.
289. Form of Complaints.
290. Form of Answer.
291. Notice of Motion to Dismiss.
ENFORCEMENT BY THE COURTS OF THE ACT TO REGU-
• LATE COMMERCE, INCLUDING A DISCUSSION OF
THE EFFECT GIVEN BY THE COURTS TO
THE ORDERS AND FINDINGS OF THE
§ 292. Jurisdiction of the Courts of the States to Enforce Provisions
of the Act to Regulate Commerce.
293. Same Subject. Statutory Provisions.
TabIvE of Contents xv
294. Same Subject. Awards of Damages.
295. Same Subject. Suit for Damages Against an Initial Carrier.
296. Compelling a Common Carrier to Transport.
297. Jurisdiction. General Statement.
298. Commerce Court.
299. Jurisdiction of the Courts of the United States to Compel
the Attendance of Witnesses Before the Commission and
Enforce Obedience to Act.
300. Enforcement of Forfeitures.
302. To Enforce Rights under Act to Aid Railroads and Telegraph
303. Injunctions in Aid of Enforcement of Act.
304. Injunctions Against Unlawful Rates and Practices.
305. Same Subject. Conclusion.
306. Same Subject. Effect of Amendment of 1910.
307. Same Subject. Venue.
308. Jurisdiction of Suits to Set Aside Orders of the Commission.
309. Grounds upon Which Orders of the Commission May Be Set
310. Same Subject. Violations of the Constitution — Fourth
311. Violation of the Fifth Amendment.
312. Mistake of Law.
313. Lack of Jurisdiction.
314. The Substance and Not the Form of the Finding Determines.
315. Disregard of the Legal Effect of Undisputed Testimony.
316. Lack of Full Hearing.
317. Awards of Damages.
318. Awards of Damages — Parties and Procedure.
319. Procedure to Enforce or Annul Orders of the Commission.
320. Interlocutory Injunctions — Three Judges to Hear Application
321. Interlocutory Injunctions — Notice and Hearing.
322. Interlocutory Injunctions — Appeal from.
323. Appeal from Final Judgment.
324. Venue of Suits.
ACTS OF CONGRESS INDIRECTLY AFFECTING INTER-
§ 325. Scope of Chapter.
326. Quarantine Laws Relating to Transportation.
327. Sherman Anti-Trust Law.
328. Clayton Anti-Trust Law.
329. Federal Trade Commission Law.
330. Safety Appliance Law.
331. Hours of Service Law.
XVI Table of Contents
332. Employers' Liability Law.
333. Arbitration Law.
334. Breaking Seals of Railroad Cars Containing Interstate or
ACTS REGULATING COMMERCE.
Including act approved February 4, 1887, chapter 104, effective April
5, 1887, 24 Stat. L. 379, U. S. Comp. Stat. 1901, p. 3154, 3 Fed. Stan
Ann. 809, et. seq. Known as the Cullom Act.
Amendment of March 2, 1889, 25 Stat. L. 855, Chap. 382, U. S. Comp.
Stat. 1901, p. 3158, 3 Fed. Stat. Ann. 852, et. seq.
Amendment of February 10, 1891, Chapter 128, 26 Stat. L. 753, U.
S. Comp. Stat. 1901, p. 3163, 3 Fed. Stat. Ann. 839.
Amendment of February 8, 1895, Chap. 61, 28 Stat. L. 643, U. S.
Comp. Stat. 1901, p. 3171, 3 Fed. Stat. Ann. 851.
Act February 11, 1893, 27 Stat. L. 443, Chap 83, U. S. Comp. Stat.
1901, p. 3173, 3 Fed. Stat. Ann. 855. Known as the Testimony Act.
Act February 11, 1903, Chapter 544, 32 Stat. L. 823, U. S. Comp.
Stat. Supp. 1907, 10 Fed. Stat. Ann. 199. Known as the Expediting
Act February 19, 1903, Chap. 708, 32 Stat. L. 847, U. S. Comp. Stat.
Supp. 1907, p. 880, 10 Fed. Stat. Ann. 170. Known as the Elkins Act.
Act February 25, 1903, Chap. 755, 32 Stat. L. 903, 10 Fed. Stat. Ann.
173, being section one of the Appropriation Act.
Act June 29, 1906, 34 Stat. L. 584, Chap. 3591, U. S. Comp. Stat.
Supp. 1907, p. 892, Fed. Stat. Ann. Supp. 1907, p. 167. Known as the
Act June 30, 1906, Chap. 3920, 34 Stat. L. 798, U. S. Comp. Stat.
Supp. 3907, p. 900, Fed. Stat. Ann. Supp. 1907, p. 382.
Act April 13, 1908, 35 Stat. L. 60, Chap. 143
Act of June 18, 1910, 36 Stat. L. 539, Chap. 309, U. S. Comp. Stat.
Supp. 1911, p. 1288, Fed. Stat. Ann. Supp. 1912, pp. Ill to 127.
Act Aug. 24, 1912, 37 Stat. L. 566, Chap. 390, Fed. Stat. Ann. Supp.
1914, p. 378. Known as Panama Canal Act.
Act Mch. 4, 1913, 37 Stat. L. 1013, Chap. 160, Fed. Stat. Ann. Supp..
Act Mch. 1, 1913, 37 Stat. L. 701, Chap. 92, Fed. Stat. Ann. Supp.
1914, p. 204.
Act Oct. 22, 1913. Known as District Court Act.
Government Aided Railroad and Telegraph Lines Act.
Lake Erie and Ohio Ship Canal Act.
Parcel Post Act.
Act March 4, 1915. Known as Cummins .Amendment
§ 335. Scope of Act to Regulate Commerce.
336. Not Applical)le to Intrastate Transporfaticn.
Table of Contents xvii
337. Terms "Common Carrier," "Railroad," and "Transportation"
338. Duty of Carrier to Furnish Transportation and to Establish
339. All Transportation Charges Must Be Reasonable.
340. Classification of Telegraph, Telephone and Cable Messages.
341. Classifications, Regulations and Practices Must be Reasonable.
342. Free Service with Certain Exceptions Prohibited and Penalties
343. Railroad Companies Prohibited from Transporting Commodi-
ties in Which They Are Interested, with Certain Exceptions.
344. Terms under Which Switch Connections Shall Be Made.
345. Definition and Prohibition of Unjust Discrimination.
346. Undue and Unreasonable Preference Prohibited.
347. Carriers Shall Accord Reasonable and Equal Facilities for In-
terchange of Traffic.
348. Rule as to Long and Short Hauls.
349. Relief from Long and Short Haul Clauses.
350. Section Not to Apply for Six Months.
351. Rates Reduced by Competition with Water Routes Not In-
352. Pooling of Freights and Division of Earnings Prohibited.
353. Rail Carrier Not to Own Competing Water Carriers.
354. Whether or Not Competition Exists to Be Determined by the
355. Commission May Relieve from Provision.
356. Water Carriers to File Tariffs.
357. Violators of Sherman Anti-Trust Act Not to Use Panama
358. Carriers Shall File, Print and Keep Public Schedules of Rates.
359. Regulations as to Printing and Posting Schedules of Rates for
Freight Moving Through Foreign Countries from and to
Any Place in the United States.
360. No Change of Schedules of Rates Shall Be Made Without
361. Names of All Carriers Parties to Schedules Must Be Specified.
362. Carriers Shall File Contracts Relating to Trafiic Arrangements.
363. Commission May Prescribe Form of Schedules.
364. No Carrier Shall Participate in Interstate Commerce Unless
the Charges Therefor are Published, and No Such Car-
rier Shall Deviate from the Published Schedules.