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ing relief. If the power be never exercised its very
existence will go far to prevent unjust charges.

The railroads and the people should have no
quarrel. The prosperity of the country aids the
railroads ; the prosperity of the railroads
helps the country. The railroads — more
than any other factor — have contributed to the
development of the United States. The upbuild-
ing of the nation has been reflected in the evolution
of the best and most successful railroad systems of
the world.

The obligations of the public and the railroads
are reciprocal. The interests of both require just
and reasonable rates. Exorbitant charges curtail
traffic. Fair rates increase business. Still with this
economic check instances of unjust charges are un-
avoidable. The present system of making rates is
best both for the public and the railroads ; but it
is so complex and, at the same time, so elastic that
abuses must necessarily creep in. It is the duty of
the public and of the railroads to unite in obtain-
ing conservative remedial legislation.

Radical measures are neither necessary nor desir-
able. The people through their government have



26o AMERICAN RAILROAD RATES

hitherto adopted the laissez faire policy. Millions
of dollars have been invested in the belief that this
policy would continue. Conditions have changed.
The development of the principle of combination
renders some measure of legislative protection to
the shipper necessary. But in justice to the rail-
roads and their stockholders, laws should be con-
fined to granting specific relief for specific evils —
and granting it along the safest lines.

The obligation of the railroads under existing
conditions to unite in the movement for conserva-
tive legislation is as clear as is the necessity for
such legislation. The railroads should perceive
that they are not merely private corporations — that
their interests are bound up with those of the
public. Their officials should recognize the pop-
ular feeling that the shipper does not now have a
fair opportunity to assert his right to just charges.
Instead of assailing all propositions of rate regula-
tion, they should join in an effort to ascertain that
which is most judicious. Defeating conservative
measures merely incites radical action. That rail-
road official serves the interests of his stockholders
best in the long run who never fails to appreciate
the rights of the people. A contented public along
its line is the best asset of a railroad company.



INDEX



INDEX



A

ADAPTABILITY,

law-made rates lack, 59.
AGREEMENTS TO MAINTAIN RATES,

effect of, 136.

nature of, 136.
ANTI-TRUST STATUTE,

decisions against traffic associations under, 149.

effect of decisions under, 152.
AUSTRIA-HUNGARY,

railroads in, 197.

rates in, compared with other countries, 198.

zone system in, 197.

B

" BASING POINT SYSTEM," 115.

C

CANAL,

early schedule of, tolls, 65.
basis of tolls upon, 5.
similarity of railroad to, 4.
CAPITAL,

invested in railroad cannot be withdrawn, 9.
railroad entitled to fair return upon, 25.



264 INDEX

CARLOAD LOTS,

allowance for, not discrimination, 102.

difference in rates for, justifiable, 76.

minimum weight of, 75.
CARRIER,

railroad a, 4, 8.
" CHARGING WHAT THE TRAFFIC WILL BEAR "

application of value theory, 54.

involves classification, 55.

involves discrimination, 56.

meaning of phrase, 54.

practicable method of rate-making, 55.
CHARTERS,

rate provisions in early, 214.
CLASSIFICATION,

committees, 67.

difi^erences in, for carload lots, 73,

development of, 65.

extract from "Official," 71.

factors in, 69.

how made, 67.

nature of, 64.

''Official," 6-].

principles of, 68.

practice in, 68.

result of value principle, 55.

"Southern," 68.

uniform, 77.

♦♦ Western," 68.
CLASS TARIFFS, 79.
COMBINATIONS,

agreements forming, 136.

alternatives of competition, 132.

at common law, 132.

consolidation, 154.



INDEX 265

(COMBINATIONS — continued.

decisions of United States Supreme Court against, 149.

effect of upon discriminations, 120.

effect of decisions against, 152.

forms of, I 24.

of connecting roads, 172.

pools, 137.

rule of public policy concerning, 132.

since prohibition of pooling, 148.

traffic associations, 148.
COMMERCE CLAUSE,

limitations of, upon power of State over rates, 208.

source of federal power over rates, 223.
COMMISSION,

cannot determine reasonableness of rates, 205.

cannot exercise judicial functions, 205,

delegation of power to, 206.

distinction between reasonableness of rates made by, and by
carrier, 211.

power may be conferred upon, to make rates, 224.

railroad, with mandatory powers, 219.

railroad, with supervisory powers, 220.

COMMODITIES,

discriminations between, 90.
COMMODITY TARIFFS,

nature of, 80.

reasons for making, 82.

specimen of, 81.
COMMON CARRIER,

obligations of railroad as, 202.

railroad a, 2.
COMMON LAW,

combinations at, 132.

discriminations at, 103.

remedies of shipper at, 33, 232.



266 INDEX

"COMMON POINTS," 84.

COMPARISON,

necessary to make rate, 35.

rates determined by, 61.

standards of, 62.
COMPARISON OF RATES,

differences in conditions in United States and Europe, 183.

in making, differences in conditions must be considered, 183.

movement of American and European rates, 183 n.

rates in Austria-Hungary, 197.

rates in England, 186.

rates in France, i 89.

rates in Germany, 193.

table showing, in United States and Europe, 182.
COMPETITION,

direct, i 26.

effect of direct, 128.

for markets, 125.

forms of, I 24

indirect, 125.

leads to discriminations, 94, 131.

railroad, distinguished from industrial, 128.
CONDUCTING TRANSPORTATION,

division of expenses for, 16.

proportion of expenses for, to total expenses, 17.
CONFISCATORY,

individual rates cannot be, 213, 252.

law-made rates must be, to be unlawful, 212.

tariffs may be, 213.
CONSOLIDATION,

danger of, 158.

effect of, upon discriminations, 156.

effect of, upon rates, 156.

effect of abolition of pooling upon, i 54.

effect of anti-trust decisions upon, 154.



INDEX 267

CONSTANT EXPENSES,

conducting transportation partially, 17.

fixed charges are, 1 1 .

general expenses are, 13.

independent of traffic, 1 1.

maintenance of equipment partially, 15.

maintenance of way partially, 14.

nature of, 11.

table showing, 1 7.

wholly non-apportionable, i 8.
COST,

as factor in rate making, 8, 37.

joint, 18.
COST OF SERVICE,

meaning of phrase, 36.
COST THEORY OF RATES,

analoo^ies to, 40.

impracticable, 39.

stated, 39.

unjust, 42.

unstable, 42.
COURTS,

can interfere with commission-made rates only when confis-
catory, 211, 252.

cannot exercise legislative functions, 204.

cannot exercise supervisory power over future rates, 252,

cannot make rates directly or indirectly, 249.

cannot participate in rate making, 253.

cannot review action of commission, 249.

determine reasonableness of rates, 33, 203,

duty of, to require reasonable rates, 3 3 .

D

DELEGATION OF RATE-MAKING POWER, 206, 224.
DENSITY OF TRAFFIC,
factor in making tariffs, 83.



1?68 INDEX

DIFFERENTIALS,

between Eastern ports, 134.

constitutional provision against port preferences and, 229.

distinction between, and discriminations, 135.

nature of, 133.

types of, 133.
DISCRIMINATIONS,

at common law, 103.

before Interstate Commerce Act, 105.

between commodities, 90.

construction of provisions of Interstate Commerce Act con-
cerning, 108.

effect of combinations upon, i 20.

effect of consolidation upon, 156

effect of Elkins' law upon, i 20.

effect of legislation against, 119.

effect of prosperity upon, 120.

Elkins' law concerning, 116.

English statutes against, 105.

just, 90.

local, 90, 93.

** long and short haul clause " of Interstate Commerce Act, 1 1 1.

nature of, 89.

personal, 91, 99.

provisions of Interstate Commerce Act concerning, 106.

unjust, 90.

E
EARLY STATE RATE LEGISLATION, 214.
ECONOMIES IN OPERATION,

caused decline in rates, 169,
ELEMENTS,

in determining value of railroad property, 26.
ELKINS' LAW

effect of, I 20.

provisions of, 1 1 6.



INDEX 269

EMINENT DOMAIN,

as a basis of State power over rates, I, 201.
ENGLAND,

classification in, 187.

class rates in, 187.

exceptional rates in, 188.

maximum rates in, 188.

pooling in, 1 89.

Railway Commission in, 188.

rates in, i 83.
EQUAL MILEAGE RATES, 43.
ESCH-TOWNSEND BILL,

provisions of, 243, 247 n.

unconstitutionality of, 243.
"EVENERS," 138.

EXISTING STATE RATE LEGISLATION, 218.
EXPENSES OF RAILROAD,

generally not apportionable, 18.

independent of traffic, 10.



FEDERAL REGULATION OF RATES,

courts cannot review action of commission, 249,

Esch-Townsend bill, 242.

expediency of additional legislation, 234.

existing legislation, 230,

forms additional legislation cannot take, 242.

form additional legislation can take, 255.

inefficiency of existing legislation, 230,

judicial functions respecting rates, 224.

legislative functions respecting rates, 224.

limitations of constitutional provision against port preferences,

227.
limitations of federal power, 224.



270 INDEX

FEDERAL REGULATION OF KkTE?, — continued.

limitations of Fifth Amendment, 225.

measure suggested, 255.

status Wxihont effective legislation, 232.

source of federal power, 223.

unconstitutionality of proposed measures, 243.
FIFTH AMENDMENT

limitations of, upon federal power over rates, 225.
FIXED CHARGES,

constant expenses, 1 1 .

definition of, 1 1.

not apportionable, i 8.

proportion of, to total expenses, 1 2.
FIXED INVESTMENT,

railroad a, 8.
FLUCTUATING EXPENSES,

conducting transportation partially, 17.

largely non-apportionable, 18.

maintenance of equipment partially, 15.

maintenance of way partially, 1 4,

nature of, 11.
FOURTEENTH AMENDMENT,

limitations of, upon State power over rates, 209.
FRANCE,

changes in rates in, 192.

charges by kilometric tables in, 190.

classification in, 190.

fixed rates in, 191.

maximum rates in, 190.

railroads in, 189.

rates in, compared with other countries, 192.
FUNCTIONS OF RAILROAD, 4, 7.



INDEX 271



GENERAL EXPENSES,

constant, 13.

items of, 12.

proportion of, to total expenses, 12.

nature of, 1 2.
GERMANY,

control of railroads in, 194.

efficiency of railroads in, 196.

factors in rates in, 195.

preferential tariffs in, 196.

railroads in, 193.

tariffs in, 195.
GOVERNMENT,

obligations of railroad to, i.

should not make initial rates, 60.
GRANGER MOVEMENT, 216.



IMPORT AND EXPORT CASES, no.
INITIAL RATES,

railroad should make, 60.

who should make, 56.
INTERSTATE COMMERCE,

federal power over rates in, 223.

subject to federal regulation, 208.
INTERSTATE COMMERCE ACT,

construction of provisions of, concerning discriminations, loi

long and short haul clause, ill.

operation of provision of, against pools, 146.

provisions of, against discriminations, 106.

provisions of, against pooling, 145.

provision of, that rates shall be reasonable, 32,

remedies of shipper under, 231,



272 INDEX

INTERSTATE COMMERCE COMMISSION,

can merely shift burden of proof, 232.
cannot be authorized to exercise judicial powers, 244.
cannot now reduce rates, 230.
powerless to make rates, 230.
INTRA-STATE COMMERCE,
subject to State regulation, 208.

J

JOINT COST,

basis of charging according to the value of service, 47.

nature of, 17.

railroad expenses largely, I 8.
JOINT TRAFFIC ASSOCIATION CASE, 151.
JUDICIAL FUNCTION,

cannot be exercised by commission, 205.

cannot be exercised by legislature, 205.

respecting rates, 203, 224.

to determine constitutionality of laws is, 210.

to determine reasonableness of rates is, 33, 203.

L

LAW OF INCREASING RETURNS,

effect of, upon movement of rates, 169, 178.

effect of, upon rates, 20.

nature of, 19.

operation of, 21.
LEGISLATIVE FUNCTION,

of making rates cannot be reviewed by courts, 249.

respecting rates, 202, 224.

to make future rates is a, 202.
LIMITATIONS OF RATES, 25.
LOCAL DISCRIMINATION,

causes of, 93.

effect of, 94.



INDEX 273

LOCAL DISCRIMINATION — continued.

nature of, 90.

not necessarily unjust, 93.

results from competition, 94.

results from value principle, 56.
"LONG AND SHORT HAUL CLAUSE," in.

M

MAKING RATES, 36.
MAXIMUM OF RATES, 29.
MILEAGE,

factor in cost of service, 37.

factor in making rates, 46.
MINIMUM OF RATES, 29.
MONOPOLY,

definition of economic, 22 n.

effect of railroad, 24.

kinds of, 22.

railroad as a, 22.
MOVEMENT EXPENSES, ;

nature of, 16.
MOVEMENT OF RATES,

arrest of declining, 177.

causes of declining, 169.

comparative, in America and Europe, 183 n.

declining, 160.

effect of competition upon, 130, 176,

effect of pools upon, 141.

tables show^ing, 162, 164, 166, 167, 168, 178.
"MOVING THE FREIGHT," 37.

o

OBLIGATIONS OF RAILROAD, 3.
OPERATING EXPENSES
division of, 12.

18



274 INDEX



PERSONAL DISCRIMINATIONS,

causes of, 99.

forms of, 99.

nature of, 91.
POOLS,

effect of, upon rates, 141.

" Eveners," 138.

history of, 1 42.

in England, 189.

in foreign countries, 147.

money, 139.

nature of, 137.

operation of provision of Interstate Commerce Act against,
146.

provision of Interstate Commerce Act against, 145.

traffic, 137.

types of, 137.
PORT PREFERENCES,

constitutional provision against, 227.

construction of constitutional provision against, 227.

differentials under provision against, 229.
PRIVATE CARS, loi, 122.
PRIVATE TERMINALS, 102, 123.
PROPERTY,

value of railroad, how determined, 26.
PUBLIC DUTIES OF RAILROAD, 2.
PUBLISHING TARIFFS, 86.

Q

QUASI-PUBLIC CHARACTER OF RAILROAD,

as basis of State power over rates, i, 201.



INDEX 275

R

REASONABLENESS OF RATES,

a judicial question, 33, 203, 244.

cannot be determined by commission, 205, 244.

determined by comparison, 61.

different standards, 211.

difficult to determine, per se, 61.

distinction between, when made by carrier and by legisla-
ture, 211.
REASONABLE RATES,

required at common law, 32.

required by statute, 32.
REBATES, 1 01.

REFRIGERATOR CARS, 1 01, 122.
REMEDIES OF SHIPPER,

at common law, 33, 60, 232.

under Interstate Commerce Act, 231.
REVIEW,

courts cannot be empowered to, action of commission, 204,
249.
RISK,

element in rate making, 37n.

factor in classification, 68.

factor in making tariffs, 85.

release from, as affecting rates, 85,



SHIPPER,

remedies of, at common law, 33, 232.

remedies of, required, 33, 60, 233.
STATE REGULATION OF RATES,

early rate legislation, 214.

existing legislation, 218.



276 INDEX

STATE REGULATION OF KATES — continued.

delegation of rate making power, 206.

Granger movement, 216.

judicial functions respecting rates, 203.

legislative functions respecting rates, 202.

limitations of Commerce Clause, 208.

limitations of Fourteenth Amendment, 209.

power of State over rates, 200.
STATION EXPENSES,

nature of, 16.
SUPPLY AND DEMAND,

not proper basis of rates, 52.

T

TARIFFS,

class, 79.

commodity, 80.

factors in making, 83.

nature of, 65.

publishing, 86.

should afford fair return upon capital, 25.
TAXATION,

charging according to value of service analogous to, 53, 56,

237.
TERMINALS,

private, 102, I 23.
TOLL TAKER,

railroad a, 4, 7.
TOLLS,

charter provisions concerning, 6.

part of rate, 4, 8.

upon early canals, 5, 65.
TRANS-MISSOURI FREIGHT ASS'N CASE, 149.
TURNPIKE,

similarity of railroad to, 4.



INDEX 277

U



UNDERBILLING, 10 1.
UNIFORM CLASSIFICATION, -]-],



VALUE OF RAILROAD PROPERTY,

how determined, 26.
VALUE OF SERVICE,
as basis of rates, 8, 47.
kinds of traffic affected by, 49.
meaning of phrase, 29 n.
in classification, 68
principle analogous to taxation, 53.
theory beneficial to railroad and shipper, 50.

z

ZONE,

system of rate making, 197.



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Online LibraryWalter Chadwick NoyesAmerican railroad rates → online text (page 17 of 17)