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[References are to sections]

RATE POLICIES-Continued

no obligation to make preferential rates, 806.
such concessions forbidden by later cases, 676.
concessions to certain localities, 679.

RATE REASONABLENESS,

1. The schedule taken as a whole.
provisions of the Act, 210.

reasonableness of the schedule as a whole, 220.
tests of the reasonableness of a schedule, 221.
many elements to be taken into account, 222.
relation of a particular rate to a whole schedule, 223.
conclusions as to proportionate rate, 224.

company cannot make unreasonable rates, 225.
company cannot justify exorbitant profits, 226.

special circumstances affecting the particular rate, 227.

2. Particular rates considered separately.

provisions of the Act, 340.

reasonableness of the separate rates, 228.
schedule as a whole may throw light, 229.
bearing of tariff as a whole, 230.

rule of proportionality in sharing costs, 231.
average cost always modified, 232.
application of both tests necessary, 233.

service not worth usual amount, 234.

service of unusual value, 235.

3. Theories of rate making.

theories as to rate making, 381.

estimating cost of service, 382.

bases of commission action, 1038.
how rates are determined, 1036.
relative rates, 420.

the value of the service, 420.

the cost of service, 420.

weight, bulk, and convenience, 420.

the amount of the product, 420.
general public good, 420.
competition in traffic, 420.
proportionate rates, 421.

4. Testing rates by companion.

basis of reasonable rates, 1036.

what is economically desirable not the test, 1036.

general principles as to reasonableness, 443.

carrier entitled to reasonable compensation, 442.

significance of that phase at common law, 1037.
nature of the rate, 1040.

rates unreasonable in themselves, 445.

revenue per ton per mile, 595.

[References are to sections]

RATE COMPARISONS-Continued

discrimination between commodities forbidden, 549.
difference between values justifies classification, 550.
relative differences between ratings, 551.

distribution of the burden by classification, 552.

RATE POLICIES,

1. Competition as a factor in rate making.

suppression of competition by agreement, 789.

potential competition, 790.

competition as a factor in rate making, 792.

competition as a justification for discrimination, 793.
incidents of competition, 794.

competitive rates must be compensatory, 796.
non-competitive rates must be reasonable, 795.
suppression of competition by consolidation, 802.
carrier may refuse to make competitive rates, 803.
2. Rates dictated by competition.

rates may be made to meet competition, 452.
competition as a factor in rate making, 453.
policy for permitting competitive rates, 454.
rates low enough to hold business, 455.
reduction below a remunerative basis, 456.
standard rate among competing lines, 457.
competition not a ground for raising rates, 458.

absence of competition does not justify increase, 459.
no obligation to meet competition, 460.

competition in passenger fares, 461.

3. Rates designed to equalize advantages.

operation of the principle of equalization, 462.
limitations upon the Commission, 463.

rates made from a commercial standpoint, 464.

rates should not equalize differences in value, 465.
carriers not obliged to equalize disadvantages, 466.
protection of natural advantage, 467.

no right to build artificial markets, 468.

no equalization of patrons, 469.

equalization of advantage as a factor, 470.

passenger fares slightly affected by this principle, 471.

4. What circumstances justify preferential rates.

creation of a market by preferential rates, 602.

equalizing manufactures in different localities, 603.

how the Commission determines justifiable discrimination, 799.
back freights may be lower than outward freights, 800.

public policy against all discrimination, 801.

substantial differences of condition, 803.

what differentials may be allowed, 804.

reconsignment arrangements and transit privileges, 805.

[References are to sections]

RATE POLICIES-Continued

no obligation to make preferential rates, 806.
such concessions forbidden by later cases, 676.
concessions to certain localities, 679.

RATE REASONABLENESS,

1. The schedule taken as a whole.

provisions of the Act, 210.

reasonableness of the schedule as a whole, 220.
tests of the reasonableness of a schedule, 221.
many elements to be taken into account, 222.
relation of a particular rate to a whole schedule, 223.
conclusions as to proportionate rate, 224.

company cannot make unreasonable rates, 225.
company cannot justify exorbitant profits, 226.

special circumstances affecting the particular rate, 227.

2. Particular rates considered separately.

provisions of the Act, 340.

reasonableness of the separate rates, 228.
schedule as a whole may throw light, 229.
bearing of tariff as a whole, 230.

233.

rule of proportionality in sharing costs, 231.
average cost always modified, 232.
application of both tests necessary,
service not worth usual amount, 234.
service of unusual value, 235.

3. Theories of rate making.

theories as to rate making, 381.

estimating cost of service, 382.

bases of commission action, 1038.

how rates are determined, 1036.
relative rates, 420.

the value of the service, 420.

the cost of service, 420.

weight, bulk, and convenience, 420.

the amount of the product, 420.

general public good, 420.
competition in traffic, 420.
proportionate rates, 421.

4. Testing rates by companion.

basis of reasonable rates, 1036.

what is economically desirable not the test, 1036.

general principles as to reasonableness, 443.

carrier entitled to reasonable compensation, 442.

significance of that phase at common law, 1037.
nature of the rate, 1040.

rates unreasonable in themselves, 445.

revenue per ton per mile, 595.

[References are to sections]

RATE REASONABLENESS-Continued

how rate system is justified, 598.

establishing of proportional rates, 598.

RATE REGULATION,

1. Certain limitations fundamental.

general principles governing reasonableness, 211.

rates must be fair to the company and to the public, 212.
limitations within which rates must be made, 213.
unreasonable regulation universally forbidden, 214.
value of the services constitutes minimum, 215.
interests of the companies to be considered, 216.
interests of the public to be considered, 217.
accommodation of the interests of both sought, 218.
the complexities of the general problem, 219.

2. Bases of regulation.

constitutional limitations upon Commission regulation, 236.
reasonable rates not necessarily profitable, 237.
when fair net earnings left, 238.

possibility of increase of business, 239.

making rates compared with levying taxes, 240.

governmental regulation best for all concerned, 241.
inherent difficulties of accommodating all tests, 242.
conflicting authorities still persist, 243.

3. Powers of the Commission.

power to pass upon rates, 991.

Commission to determine rates, 1030.

orders of the Commission, 1031.

power to fix rates originally denied, 1032.

decision of the Supreme Court, 1033.

powers established by later amendments, 1034.

power under the Act to fix maximum rates, 1034.
adjustments to prevent discrimination, 1034.
no disturbance of reasonable rates, 1035.

4. Limitations upon the Commission.

jurisdictional limitations upon rate revision, 1037.
extent that jurisdiction has been confided, 1039.
working within legal bounds, 1038.

conditions affecting the movement of traffic, 1038.
how the Commission now views its function, 1039.
will not dictate as to the policies, 999, 1039.
rates which are reasonable in themselves, 1039.

its function is to administer, 1045.

only those matters which affect rating, 1047.

cannot fix minimum rates, 1034.

RATE STRUCTURE,

1. The unit of charge.

fixing the particular rate, 561.

[References are to sections]

RATE STRUCTURE-Continued

characteristics of a rate, 562.

established unit prima facie reasonable, 563.
classification sheet not varied by representation, 564.
methods of charging in rate making, 565.

a minimum rate is justifiable, 566.
basis of minimum weights refund, 567.
charge for excess over minimum, 568.

2. Additional charges for special service.

general principles as to additional charges, 570.
propriety of making extra charges, 571.

freight should cover the entire transportation, 572.
no separate charge for a part of the transit, 573.
charges for services during transportation, 574.
services after carriage is ended, 575.

storage charges, 576.

demurrage costs, 577.

terminal charges usually absorbed, 578.
terminals regarded as connections, 579.

3. Distance rates and the ton-mile.

mileage rate tends to decrease inversely, 580.

general standard of comparison the ton-mile, 581.

equal mileage rates impractical, 582.

rates in rough proportion to distance, 583.

construction of distance rates, 584.

bases of rate structure, 585.

different cost of haulage, 586.

divisions built through a difficult territory, 587.

factors modifying distance rates, 588.

comparison of through rates and local rates, 589.
carriage in opposite directions, 590.

4. Grouping stations and basing points.
distances considered in grouping, 593.
grouping must be reasonable, 594.
testing reasonableness of grouping, 595.
uniform rate to a group of stations, 596.
how basing points are established, 598.
whether basing points justified, 599.
determination of base rate, 600.

extent of power over grouping, 601.

RATE THEORIES,

1. Cost of service as the basis.

method of estimating cost of service, 382.

respect paid to the cost, 384.

cost of service the basic test, 385.

costs considered in determining reasonableness, 386.

limitation upon the law of increasing returns, 387.

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