that of a purely speculative character, and frequently occasion great injustice and heavy losses. of respon 10. That, in the absence of national and uniform legislation, the Avoidance railroads are able by various devices to avoid their responsibility sibility. as carriers, especially on shipments over more than one road or from one State to another, and that shippers find great difficulty in recovering damages for the loss of property or injury thereto. II. That railroads refuse to be bound by their own contracts, and arbitrarily collect large sums in the shape of overcharges in addition to the rates agreed upon at the time of shipment. 12. That railroads often refuse to recognize or be responsible for the acts of dishonest agents acting under their authority. 13. That the common law fails to afford a remedy for such grievances, and that in cases of dispute the shipper is compelled to submit to the decision of the railroad manager or pool commissioner, or run the risk of incurring further losses by greater discriminations. 14. That the differences in the classifications in use in various parts of the country, and sometimes for shipments over the same roads in different directions, are a fruitful source of misunderstandings, and are often made a means of extortion. 15. That a privileged class is created by the granting of passes, Free passes. and that the cost of the passenger service is largely increased by the extent of this abuse. tion. 16. That the capitalization and bonded indebtedness of the Overcapitalizaroads largely exceed the actual cost of their construction or their present value, and that unreasonable rates are charged in the effort to pay dividends on watered stock and interest on bonds improperly issued. 17. That railroad corporations have improperly engaged in lines of business entirely distinct from that of transportation, and that undue advantages have been afforded to business enterprises in which railroad officials were interested. 18. That the management of the railroad business is extravagant and wasteful, and that a needless tax is imposed upon the The nature of the complaint. shipping and traveling public by the unnecessary expenditure of large sums in the maintenance of a costly force of agents engaged in a reckless strife for competitive business. 147. The Interstate Commerce Commission at Work The Interstate Commerce Act of 1887, as amended by later statutes, provides for a commission of seven members, appointed by the President and Senate, and empowered, on complaint and after hearing, to determine and prescribe reasonable rates, regulations, and practices, to order reparation to injured shippers, and to require any carriers to desist from unjust discrimination or undue or unreasonable preferences. The way in which the commission may grant relief to shippers is well illustrated by the report of the action in the following case: W. O. Mitchell v. Atchison, Topeka & Santa Fe Railway Company; De The complainant is a resident of Oklahoma City and a shipper of wheat, who complains that the rates charged by the defendants for the transportation of that commodity from Oklahoma City to Gainesville, Tex., and Forth Worth, Tex., are excessive. The Atchison, Topeka and Santa Fe Ry. Co. and its connection, the Gulf, Colorado & Santa Fe Ry. Co., carry this traffic from Oklahoma City to Gainesville, while all the defendants reach Fort Worth. The short-line distances are 140 miles to Gainesville and 202 miles to Fort Worth, and the rate in both cases was at the date of the hearing 28 cents per 100 pounds. The rate on wheat for 200 miles is 15 cents in Texas, 13 cents in Kansas, 18 cents in Nebraska, 10.8 cents in Iowa, 17.5 cents in Minnesota. In our opinion, under all the circumstances, the rate from Oklahoma City to Fort Worth ought not to exceed 22 cents per 100 pounds, and to Gainesville 20 cents per 100 pounds. These rates are extremely high and the difference between Fort Worth and Gainesville rather small considering the distance by which they are separated; but, as already said, consideration must be given to the fact that it is impossible to pass abruptly from the group system. It should be further observed that these rates are intended to apply only to local consumption at Fort Worth and Gainesville. No milling-in-transit or other transit privilege should be allowed. If the grain is shipped beyond these points, either as wheat or flour, it should be upon the local rates out. An order in accordance with the above views will be issued. Order Upon the foregoing report The ordered to It is ordered, That the defendants, Atchison, Topeka & Santa companies Fe Railway Company; Chicago, Rock Island & Pacific Railway desist. Company; St. Louis & San Francisco Railroad Company, and Missouri, Kansas and Texas Railway Company, be, and they are hereby, notified and required to cease and desist, on or before the 1st day of September, 1907, from charging, demanding, collecting or receiving for the transportation of wheat in carloads from Oklahoma City, in the Territory of Oklahoma, to Gainesville in the State of Texas, their present rate of 28 cents per 100 pounds. It is further ordered, That said defendants be, and they are The new hereby, notified and required to establish and put in force on or before said 1st day of September, a rate of not more than 20 cents per 100 pounds and apply that rate to the transportation of wheat in carloads over their respective lines of railway from said Oklahoma City to said Gainesville, during a period of at least two years from and after said 1st day of September. It is further ordered, That said defendants be and they are hereby, notified and required to cease and desist, on or before the 1st day of September, 1907, from charging, demanding, collecting or receiving, for the transportation of wheat, in carloads, from said rate fixed. Rates to be made public. Oklahoma City to Fort Worth, in the State of Texas, their present rate of 28 cents per 100 pounds. It is further ordered, That said defendants be and they are hereby, notified and required to establish and put in force, on or before said 1st day of September, a rate of not more than 22 cents per 100 pounds and apply that rate to the transportation of wheat, in carloads, over their respective lines of railway, from said Oklahoma City to said Fort Worth, during a period of at least two years from and after the said 1st day of September. And it is further ordered, That said defendants be and they are hereby, authorized to make said 20-cent rate and said 22-cent rate effective upon three days' notice to the public and the Interstate Commerce Commission, given in the manner required by law. The tariff containing such rates should bear the notation that it is issued under the authority hereby granted. 148. The Anti-Trust Act of 1890 Under its general power to regulate interstate commerce, Congress has passed many laws, such as the Safety Appliance Act, the Arbitration Act, the Pure Food Law, and the Employers' Liability Law, but the most famous of them all is the Anti-trust Law of 1890, the important clauses of which are given here: Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, Sec. 1. Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is hereby declared to be illegal. Every person who shall make any such contract or engage in any such combination or conspiracy, shall be deemed guilty of a misdemeanor, and, on conviction thereof, shall be punished by fine not exceeding five thousand dollars, or by imprisonment not exceeding one year, or by both said punishments, in the discretion of the court. Sec. 2. Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a misdemeanor, and, on conviction thereof, shall be punished by fine not exceeding five thousand dollars, or by imprisonment not exceeding one year, or by both said punishments, in the discretion of the court. Sec. 3. Every contract, combination in form of trust or otherwise, or conspiracy, in restraint of trade or commerce in any Territory of the United States or the District of Columbia, or in restraint of trade or commerce between any such Territory and another, or between any such Territory or Territories and any State or States or the District of Columbia, or with foreign nations, or between the District of Columbia and any State or States or foreign nations, is hereby declared illegal. Every person who shall make any such contract or engage in any such combination or conspiracy, shall be deemed guilty of a misdemeanor, and, on conviction thereof, shall be punished by fine not exceeding five thousand dollars, or by imprisonment not exceeding one year, or by both said punishments, in the discretion of the court. Sec. 4. The several Circuit Courts of the United States are hereby invested with jurisdiction to prevent and restrain violations of this act. . . . Sec. 6. Any property owned under any contract or by any combination, or pursuant to any conspiracy (and being the subject thereof) mentioned in section one of this act, and being in the course of transportation from one State to another, or to a foreign country, shall be forfeited to the United States, and may be seized and condemned by like proceedings as those provided by law for the forfeiture, seizure and condemnation of property imported into the United States contrary to law. Sec. 7. Any person who shall be injured in his business or property by any other person or corporation by reason of anything forbidden or declared to be unlawful by this act, may sue therefor in any Circuit Court of the United States in the district in which the defendant resides or is found, without respect to the |