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tively is to stop it altogether; and since this law furnishes a possible means of doing so its enforcement should be the aim of the carriers as well as the Commission.

Second. The subject of drayage has been discussed by the Commission and the courts. The fair import of those discussions appears to be that this service is connected with the transportation, and that the charges therefor should be stated in the published tariffs. This being so it would be a violation of the law to perform the service of drayage without providing for it in the tariffs, or to perform it for one and not for another.

Third. It is not believed that the payment of a reasonable commission for soliciting freight, or on the sale of tickets, can be held to be a rebate if the transaction is an honest one. If commissions are paid with the intent or expectation that they will be used, or if they are used, for the purpose or with the effect of granting a concession, the payment of such commissions would doubtless be held, and ought to be held, a violation of the law.

Fourth. The Commission has held that the present statute requires the publication of export and import tariffs. The Elkins Bill does not apparently change the requirements of the law in this respect, but it does afford the means for enforcing those requirements.

Fifth. It is difficult to see how the practice of charging lower rates to those who are establishing new industries than are charged at the same time to shippers of the same articles between the same points can be excepted from the operation and obligations of the law, however unobjectionable such a practice may be from a railroad and general economic standpoint.

Sixth. We prefer not to express an opinion at this time as to whether railroads may lawfully transport supplies for each other at reduced rates.

Seventh. The Commission has held that storage is a part of the service of transportation which the carrier performs, and that the charges for that service should be published in the

tariffs. The rendering of this service without such publication, or the rendering of it to one shipper and not to another, would seem to be in plain violation of the Elkins law.

Eighth. Generally speaking the divisions of a reasonable rate between connecting carriers is a matter of indifference to the public. If, however, an allowance is made to a private road for only nominal service it would be a "concession or discrimination." The question would seem to be in each case whether the arrangement was reasonable and free from discriminating design or effect.

Ninth. The first section of the Elkins Bill appears to refer exclusively to the transportation of property. The third section, investing the Circuit Courts with additional jurisdiction, covers both property and passengers.

You will understand that the foregoing are in the nature of first impressions, and that the Commission would not feel precluded by anything herein said from modifying the views above expressed in deciding an actual controversy after hearing both sides.

The Commission appreciates the difficulty of applying the hard and fast rules of a statute to unlike and changing conditions, and is not infrequently embarrassed by the want of discretionary authority. We believe that these recent amendments will prove highly efficient in their operation, because we are confident that the law in its present form will be supported by prevailing railroad sentiment and that in the efforts to enforce it the Commission will have the coöperation of railway managers generally.

Yours very truly,

(Signed) MARTIN A. Knapp,

Chairman.

INDEX

Abbreviating charters, 82.
Acceptance of the Constitution, 98.
Access to books, 158.

Act to regulate commerce, events
preceding the same, 189; text of
law, Appendix III.
Adams, H. C., quoted, 27, 222.
Administrative agents, 65.
Advisory Councils, suggested plan
for, 36; appointive and elective
members, 37; no salaries for, 38;
territorial basis of, 38; aim of, 40; |
relation to Interstate Commerce
Commission, 41; and present or-
der, 42; beginnings of, 43; in
other countries, 43; beneficial in-
fluence of, 47.
Anti-trust law, 242.
Archaic features of charters, 16, 78.
Articles of incorporation, contents
of, III; illustration of, Appendix
II.

Baltimore and Ohio, laying of first
rail, 3; charter of, Appendix I.
Basis of all legislation, 249.
Board of directors, powers of, 56.
Boards of internal improvements,
66.

Brimson case, 236.

Bureaus of chambers of commerce,
35.

Capital stock, 76.

I

dated companies, 87; previously
granted, 100; special, 100; power
to annul, 102.

Classification of freight, 213; na-
tional, 255.

Classification of railways, lack of,

18; in England, 19; in France,
19; in Prussia, 19; in Holland,
20; in Austria-Hungary, 20; in
Italy, 20; convenience of, 20.
Commissioners, 55.
Commissions: first commission
law, 65; composition of, 164;
qualifications, 165; jurisdiction,
166; advisory and regulative, 167;
summary of laws relating to, 170;
Massachusetts law, Appendix III.
Competition, not adhered to, 21.
Conflict between special and gen-
eral laws, 88.
Consolidations, 77, 137.
Constitutional provisions, 97.
Construction, economic necessity
of, 23; deliberations over, 25.
Coöperation among railways, 239,
257.
Corporate life, 117.
Cullom Bill,

243; number of
changes in, 245; power of com-
mission under, 248; opposition
to, 259.

Cullom, Senator, quoted, 223.

Declaration of public utility, 55.

Charters, early, 53; limitations on
life of, 69; miscellaneous provi- | Definitions, in Code of Per Diem
sions, 74; later, 80; of consoli- Rules, 23; lack of in charters and

1 Because of the full Table of Contents and the topical arrangement of
the material, it was not thought expedient to prepare an elaborate index
covering every point.

laws, 24; found in Canadian and | Interstate Commerce Commission,

English law, 24.

Determination of route, 121.
Discriminations, in early charters,
64; statutory provisions on, 148,
208.

Early and late, relative terms, 80.
Early general laws: characteristics,
10; progress by 1870, 11; Massa-
chusetts law of 1808, 59; discus-
sion of, 88.

Early railway charters: general
characteristics, 53; provisions on
rates, 56.

Economic adjustments, 29.
Elkins law, Supplement I.

Ely, R. T., quoted, 169.

report of 1898, 31; conferences,
with railways, 32; aim of, 33; past
and future of, 187; principles of
decisions, 195; power over rates,
230; power to secure evidence,
234; interpretation of Elkins law,
Supplement II.

James, E. J., quoted, 190, 191.
Japan, method of granting charters,

22.

Johnson, E. R., quoted, 197.
Joint Traffic decision, 241.
Joint use of track, 79.

Lack of classification of railways,
18.

Eminent domain and public use, Land grants, first act, 189.

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Punishments, upon whom they Revised Statutes of the United

should fall, 253.

Quality of service, 129.

Railway accounting, 256.
Railway charters: area of diffusion,
8; characteristics in different
sections, 9; abbreviation of, 9;
similarity of, 15; early, 53; com-
mon points, 54.

States, section 860, 235.
Routes of railways, 75.

Safety appliances, early laws relat-
ing to, 78.

Sanborn, J. B., Congressional
grants of land in aid of railways,
189.
Scalping, 141.

Secretary of Commerce and Labor,
to appoint councillors, 37.

Railway companies, conditions of Seligman, E. R. A., quoted, 228.
organization, IIO.
Railway Legislation in the United
States: general character, 7;
some defects, 12; progress of, 52.
Railways, significance of, 3; extent
of in the United States, 4; be-
ginnings of, 4; influence of, 5;
industrial departments, 34; pub-
lic carriers, 100.

Shareholders, vote of, 104.
Social circle case, 231.
State classifications, may obstruct
progress, 13.
State ownership, 72.
State participation, 71; subscrip-
tions to stock, 73.
Stocks and bonds, issues of, 162.

Rates, early charter provisions on,
56; publicity of, 62, 151; revision
of, 151; decisions on, 205;
through, 216.
Reagan bill, 192.

Taxation, limitation on power of,
70; exemption from, 71.
Through rates, 216.

Through trains and routes, 133.
Toll, as a special charge, 59, 79.

Redemption of unused tickets, 141. Trans-Missouri Freight Associa-

Regulation, 104.

Reports, annual, 159.

Reserved rights of the state, 117.
Reversion to type, 80.

tion, 240.

Troy case, 227.

Voting, graded system, 77.

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