Historical note, see vol. 11, p. 8954.

2. The Commerce Clause.-[Vol. 16]— State taxes in violation of, § 202 (b), n. 5, infra; State weight limits of vehicles, § 202 (b), n. 6.

5. National transportation policy, in general.—

Adequate transportation system: The commission was required to consider whether the barge and truck lines could survive, whether their survival was necessary for agricultural marketing and national defense, that the Government has been and is expending millions of dollars to improve navigation in the area, when it issued its order authorizing reduced rail rates, and to make findings concerning need for preserving an adequate transportation system by water, highway, rail.-Pacific Inland Tariff Bureau v. United States, 134 F. Supp. 210 (213) *.

Applications, operating authority: The national transportation policy is of vital importance in any commisison decision on application for certificate; makes it mandatory on the commission to foster sound economic conditions in transportation; to carefully weigh the entire relevant situation, including the issue of following the traffic.-Smith & Solomon Trucking Co. v. United States, 120 F. Supp. 277 (279)*.

The general purposes of the national transportation policy must be considered

in all applications for authority to transport dangerous commodities, and other Government traffic.-Riss & Co., Inc., Extension-Explosives, 64 M. C. C 299

(349).

Competition and rate making: [Vols. 11-16]-The commission gave adequate consideration to the national transportation policy in determining that tanktruck carriers have an inherent advantage in costs over rail carriers for shorter hauls of petroleum products, while rail carriers have the advantage for longer hauls.-Ward Transport, Inc. v. United States, 125 F. Supp. 363 (368)*; Petroleum, Colo. and Wyo. to W. T. L. Territory, 289 I. C. C. 457 (466) *.

The national transportation policy includes consideration of needs of competing forms of transportation; findings under that policy are basic. [344 US 298 (314)]. A carrier may initiate rates yielding revenue below that which a public body could compel it to accept, but such rates must now be in accord with the national transportation policy.-Pacific Inland Tariff Bureau v. United States, 129 F. Supp. 472 (477, 483, 484)*.

If downward trend in rail transportation of petroleum traffic were to continue, certain railroads would be entirely eliminated as carriers thereof, contrary to the national transportation policy and na

tional defense.-Petroleum in North Pacific Territory, 292 I. C. C. 317 (332) *; competition is furnished wholly by allwater route; proposed rates are not lower than necessary to enable respondents fairly to meet all-water competition.— Petroleum from Baltimore to Fla. and Ga., 291 I. C. C. 367 (374).

Assuming that proposed rate would be lower than necessary to meet present barge competition, it does not necessarily follow that it would result in unfair and destructive competition, being designed primarily to permit respondents to share in the traffic in competition with private and contract motor carriers, and to meet market competition from other origins.Soybeans, Pensacola, Fla., to New Orleans, La., for Export, 293 I. C. C. 634 (638).

When the commission has required rates of one transport agency to be raised to or near level of rates of another such agency, it has acted to prevent either actual or potential destructive competition, and in accordance with the mandate given it by Congress in the national transportation policy.-Merchandise in Mixed Truckloads-East, 62 M. C. C. 699 (723)*, citing 281 I. C. C. 127.

All-commodity rates of motor carriers are a constant competitive threat to rail carriers; have exerted a deteriorating influence on the all-commodity rate structure of motor common carriers as well; the relevant factors of the national transportation policy must be considered [321 US 194]. The commission would be derelict in its duty if it failed to take steps not only to check the downward trend in rates of carriers which created the situation, but to elevate them to level which should insure that their operation thereunder will be profitable.-Id., 63 M. C. C. 453 (482-3)*.

The commission does not regard its decisions, including those involving inducement or incentive rates, as holding that motor-carrier rates should be differentially higher than rail rates for the same service, or as preventing motor carriers from establishing rates on a parity

with those of their rail competitors, provided they are just, reasonable, and otherwise lawful.-Iron and Steel between St. Louis and Indianapolis, 62 M. C. C. 213 (219)*.

Establishment of a rate with a high but practicable minimum which is lower than the rate with a lower minimum, does not constitute a destructive competitive practice unless the reduced rate can be said to be below a compensatory level or lower than necessary to meet the competition of another mode of transportation.-Emery Transp. Co. v. Baltimore & O. R. Co., 292 I. C. C. 346 (347).

In view of importance of the traffic to the two short-line railroads, it is more than probable if proposed rates became effective, they would again attempt to restore the existing relation. The situation is potentially destructive of the rate adjustments of motor and rail carriers; it is the commission's duty to prevent this kind of competition wherever possible.-Aluminum from Badin, N. C., to the East, 62 M. C. C. 485 (491).

Considering values of the commodities, their physical characteristics, longer transit time by water, movement by rail during periods of closed navigation, and economies which could result from more efficient methods of handling in connection with water movement, a greater spread between rail and water costs than would result from rate proposed is necessary for competition that is not unfair or destructive.-Aluminum Articles from Texas to Ill. and Ia., 293 I. C. C. 467 (472).

It is the commission's duty to prevent or terminate rate wars between competing carriers wherein rates have been or are proposed to be reduced below a just and reasonable level, but in so doing the low-cost carrier may not be deprived of an inherent advantage.-Manufactured Tobacco from Ky., N. C., and Va. to the South, 292 I. C. C. 427 (438).

Protestants have invaded traffic of carriers having certain inherent advantages; admonition in the national transportation policy does not place upon the

commission the duty of securing to lesser suited form of transportation a monopoly of the traffic by denying the better suited form opportunity to meet the going rates. Various Commodities-Mid-Atlantic and New England, 63 M. C. C. 584 (586).

The commission would be remiss in its duty in administering the national transportation policy if it failed to consider the effect grant of the application would have on existing, authorized carriers to which grain traffic is of vital importance.-Commercial Barge Lines, Inc., Extension, 285 I. C. C. 549 (557).

If proposed rate were permitted to take effect, a corresponding reduction in the transcontinental rail rate could be anticipated so as to maintain relation between water and rail rates approved in 289 ICC 384; situation thus created would be directly contrary to the national transportation policy to discourage destructive competitive practices.-Tinplate from Atlantic to Pacific Coast Ports, 293 I. C. C. 157 (165).

Healthy competition is in the public interest, but when carried to the point where the service is performed at a loss, it tends to undermine the financial stability of the transport agencies, thereby to lessen their ability to furnish adequate, efficient service; may not be countenanced.-Clipper Carloading Co., Inc. v. Acme Fast Freight, Inc., 293 I. C. C. 641 (643).

Considering the facts, to refuse to permit respondents to maintain rates on same levels as rail-carrier protestants, but subject to higher minimum weight now proposed, would approach, if not actually constitute, attempt by the commission to apportion the traffic artificially and thereby eliminate normal, healthy competition.-Fabrics, Ga. and N. C. to Okla. and Tex., 63 M. C. C. 430 (434).

To require rail carriers to refrain from publishing rates reasonable and otherwise lawful so that a water carrier may retain substantially all the shipper's traffic, would be unfair to carriers and

shippers alike. Rail carriers cannot be required to maintain rates competitively too high for fear that through change to a lower basis they may cut into profits of other modes of transportation.-Cigarboxes from Newark, N. J., to Selma, Ala., 296 I. C. C. 68 (69, 70)*; Scrap Tobacco from Newark, N. J., to Selma, Ala., 297 I. C. C. 424 (425)*.

Inevitably the shipping public as a whole pays for unduly low rates accorded to certain traffic or points by rates on other traffic or from and to other points which are higher than could otherwise be maintained, and by deterioration in transportation services. The commission's duty under the national transportation policy includes taking of appropriate action to prevent recurrence of practices in violation of that policy.-Motor Carrier Rates New York City Area-New England, 62 M. C. C. 427 (441)*.

Despite contention that since pig iron has moved by water between the points as a port-to-port movement, water carriers cannot continue to live if such traffic should be diverted to rail carriers to deny rail carriers opportunity to compete fairly with water carriers would be inconsistent with the national transportation policy.-Pig Iron from Buffalo Group, N. Y., to Saginaw, Mich., 296 I. C. C. 547 (549).

National transportation policy does not require that transportation agency having inherent advantage must maintain its rates at level which will enable other forms to compete successfully. Pronouncement in Mechling case, 330 US 567 (579, 580) has application also where rail carriers provide the low-cost transportation even when same rates may not be profitable for motor carriers.-Compressors from Tecumseh, Mich., to Springfield, Mass., 297 I. C. C. 797 (799–800).

To permit respondents to make further reductions in rail rates, tank-truck operators proposing to make similar reductions, would merely produce an unjustifiable depletion of revenues, would be inconsistent with the national transportation policy and constitute a destructive