594 APPENDIX. 



657. The continued reduction of relative rates when brought about by the 

 removal of artificial and unnatural ditferences is not undesirable, but where the 

 ditference results from dissimilar circumstances and conditions and the true 

 difficulty appears to be a real and natural advantage which the one region has 

 and enjoys over the other, such continuing disturbances of rates ought not to 

 be inaugurated, especially when the charges are commodity rates not shown to 

 be unreasonable in themselves. 



652. Salt requires and gets a commodity rate lower than class rates, and the 

 roads should only be limited as to such lower rating by the rule that a commod- 

 ity shall not be carried at such unremunerative rates as will impose burdens 

 upon other articles transported to recoup loss incurred in carrying that 

 commodity. 



655. That rates should be fixed in inverse proportion to the natural advan- 

 tages of competing towns with the view of equalizing "commercial condi- 

 tions," as they are "sometimes described, is a proposition unsupported bylaw, 

 and quite at variance with every consideration of justice. Each _ community is 

 entitled to the benefits arising from its location and natural conditions, and the 

 exaction of charges unreasonable in themselves or relatively unjust, by which 

 those benefits are neutralized or impaired, contravenes alike the provisions and 

 the policy of the statute. 



663. The competition of carriers subject to the act to regulate commerce 

 does not create circumstances and conditions which the carriers can take into 

 account in determining for themselves in the first instance whether they are 

 justified under the fourth section in charging more for shorter than for longer 

 distances over their lines. 



664. The competition of markets on different lines for the sale of commodi- 

 ties at a given point served by both lines does not create circumstances and 

 conditions which the carriers can take into account in determining for them- 

 selves in the first instance whether they are justified under the fourth section in 

 charging more for shorter than for longer distances over their lines. To deter- 

 mine the force and effect of such competition involves consideration of com- 

 mercial questions peculiar to the business of shippers, such as advantage of 

 business location, comparative economy of production, comparative quality and 

 market value of commodities, all of which are entirely disconnected from cir- 

 cumstances and conditions under which transportation is conducted. Carriers 

 can not create abnormal situations by making rates which equalize advantages 

 and disadvantages of localities and thereupon claim justification for greater 

 charges on shorter hauls on the ground that the lesser long-haul charges which 

 accomplish such equalization are necessary to secure increase in traffic over 

 their lines. 



665. The carrier has the right to judge in the first instance whether it is 

 justified in making the greater charge for the shorter distance under the fourth 

 section in all cases where the circumstances and conditions arise wholly upon 

 its own line or through competition for the same traffic with carriers not sub- 

 ject to regulations under the act to regulate commerce. In other cases under 

 the fourth section the circumstances and conditions are not presumptively dis- 

 similar and carriers must not charge less for the longer distance except upon the 

 order of this Commission. 



669. Ownership of a car rented to a carrier and for the use of which the 

 carrier pays a full consideration does not of itself entitle the owner to the 

 exclusive use of such car, and, if the owner may in the contract of hire to the 

 carrier stipulate for the exclusive use of the car, it must be upon such terms as 

 shall not constitute an unjust discrimination against shippers of like traffic in 

 cars owned by the carrier and who are excluded from the use of the car so 

 hired. 



676. Transportation by rail from eastern points to the "Pacific Coast 

 terminals," Portland, Tacoma, and Seattle, is attected by the competition of 

 controlling force and in respect to traffic important in amount, of water carriers 

 reaching the same terminals, but such competition does not affect like trans- 



