596 ArPENDix. 



to measure reasonable charges in other localities where the expense of operating 

 a road and other conditions affecting transportation are widely ditferent. 



750. The practice of making one rate on the same product over a large 

 district is only justifiable under special and exceptional circumstances, and is 

 not to be encouraged when the difference in the transportation expense from 

 the various parts of such district is considerable and substantial. 



751. That railroad investments may be as secure as other property, the rea- 

 sonable rates should be liberal until earnings are sufficiently large for a fair 

 return on actual expenditure. 



752. Where the market price yields but a scant return for the labor and 

 expense of production, the cost of transportation needs to be as moderate as 

 may bo consistent with justice to the carrier. 



758. A rate which may be reasonable when applied to the transportation of 

 egg cases as a disconnected service may be unreasonable if the carriage of 

 returned cases at favorable rates is in fact a special service, the discontinuance 

 of which would unduly burden the business of shipping eggs to points of sale. 



764. Each locality competing with others in a common market is entitled to 

 reasonable and just rates at the hands of the carriers serving it, and to the 

 benefit of all its natural advantages, and no departure from the rule requiring 

 rates in all cases to be reasonable in themselves can be justified on the ground 

 that it is necessary in order to maintain existing trade relations, or to " protect 

 competing markets, " or to "equalize commercial conditions," or to secure to 

 carriers traffic from certain territory assumed to be exclusively theirs. 



773. Under the proviso to the fourth section of the act to regulate commerce 

 it is left to the Commission, in the exercise of a reasonable and lawful discretion, 

 to determine the description or exceptional character of the "special cases" in 

 which the Commission may, after investigation, authorize common carriers to 

 charge less for longer than for shorter distances, and to the extent to which 

 such carrier may be relieved from the operation of this section of the act. 



782. "Where a carrier pays mileage for a car which it employs in the service 

 of shippers it is the carrier and not the party or company from whom the car is 

 rented who furnishes the car to the shipper, and in such cases there is no 

 privity of contract between the car owner and the shipper. 



783. It is the duty of the carrier to furnish an adequate and suitable car 

 equipment for all the business it undertakes and also whatever is essential to 

 the safety and preservation of the traffic in transit. 



784. When carriers undertake the transportation of perishable traffic requir- 

 ing refrigeration in transit, ice and the facilities for its transportation in connec- 

 tion with that traffic, are incidental to the service of transportation, and the 

 charge therefore is a charge "in connection with " such service within the 

 meaning of section 1 of the act to regulate commerce, in respect to the reason- 

 ableness of which the carrier is subject to that provision of the statute. 



795. While carriers operating shorter lines have the advantage, both in 

 making rates and in carrying under them, they can not dictate a system of 

 charges which the operators of longer lines may not charge as to their own 

 roads, though it may be true as a rule, and as claimed by defendants, that, to 

 get business, longer lines must take it as low as rates at the time in force over 

 more direct routes. 



821. Excess of manufacturing cost to a complainant at one point over that of 

 its competitors in other localities, by reason of inferior raw material and fuel, 

 condition of its plant, cost of labor or other like causes, is not to be considered 

 in ascertaining the rightful relative adjustment of rates from such places, nor 

 does the magnitude of a complainant's enterprise, the number of persons for 

 whom it provides employment and support, the developing results of its 

 business upon the natural resources of a state, the impracticability of moving 

 its plant to other localities, or the fact that it produces material largely used on 

 railroads for construction or repair, entitle such complainant to different consid- 

 eration in respect of just rates than individuals and small concerns should 

 receive ; but such facts demonstrate the far-reaching extent to which serious 



