APPENDIX. 597 



injury may be effected directly and indirectly, by methods and practices which 

 the statute was designed to pi-ohibit. 



825. The action of a carrier in diverting through traffic from a shorter 

 route over which it participates in carriage, so as to requii-e for itself greater 

 aggregate revenue through a long haul by a different route over which it is also 

 engaged in transportation, sometimes results in discriminations and prejudices, 

 l)oth as to rates and facilities; and inequality in treatment of shippers and 

 localities, having no other justification than this end, is indefensible. 



852. When rates are relatively unjust, so that undue preference is afforded 

 to one locality or undue prejudice results to another, the law is violated and its 

 penalties incurred, although the higher rate is not in itself excessive, and such 

 rule is especially applicable where a given relation in rates, long continued and 

 concededly equitable, is suddenly and almost completely reversed, merely 

 because other carriers to the longer distance point have disregarded their legal 

 duty. 



860. A railway company owning the entire stock of a development com- 

 pany, which had been organized for the purpose of holding the title to certain 

 lands of the railway company, caused grain to be purchased in Kansas City in 

 the name of the development company, transported over the lines of the rail- 

 way company to Chicago, and there sold upon the market. The development 

 companjr had no bona fide interest in the transaction. Neither the railway 

 company nor the development company purchased the grain for the purposes of 

 ownership, the whole transaction being simply a device to secure its transporta- 

 tion at other than the published rate;*and the only rate paid was the profit upon 

 the transaction, which varied with each shipment. Held, that this constituted 

 a violation of the second, third, and sixth sections of the act to regulate 

 commerce. 



867. Complainant offered the defendant a car-load of potatoes at Verona, 

 Miss., and asked that the shipment be forwarded to Cleveland, Ohio, via a 

 connecting line, with which defendant had at the time through billing 

 arrangements and through rates, but defendant's agent refused to receive and 

 route the shipment in accordance with such direction, and complainant was 

 thereby damaged to the extent of $100. Held, that complainant was entitled 

 to have his merchandise carried over the route which he directed, and that the 

 failure of defendant to receive and forward the shipment accordingly was a 

 discrimination against complainant in violation of the act to regulate commerce. 

 Separation ordered. 



878. Charging the same aggregate rates on like traffic for longer and 

 shorter distances over the same line in the same direction does not contravene 

 the provisions of section 4 of the act to regulate commerce. 



882. A uniform or blanket rate on milk, and also on cream, from all stations 

 on the defendant lines to "Weehowken, Hoboken and Jersey City, N. J., or 

 through Jersey City to New York, N. Y., namely, thirty -two cents on milk 

 and fifty cents on cream per can of forty quarts, regardless of distance or differ- 

 ence in amount of service rendered. Held, to be unreasonable, unjust and 

 unduly prejudicial and in violation of sections 1 and 3 of the act to regulate 

 commerce. 



902. Water competition, to justify higher shorter-distance charges under 

 the fourth section, must be actual competition for the transportation Involved, 

 and such as to dictate the rate by rail. A railroad rute so low as to drive water 

 transportation out of existence cannot be justified by showing the possibility of 

 water competition; the law permits railroads to meet, not to extinguish, such 

 competition. 



903. Competition between markets, or between carriers subject to the 

 regulating statute, does not create such dissimilarity of circumstances and 

 conditions as will justify carriers in charging more for the short than for the 

 long haul, under the fourth section, without an order of the Commission. 



905. Railroad companies have the right to earn a proper return upon some 

 investment, just what has not been very definitely determined; but in earning 



