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[References are to sections]

RATE MAKING continued
too large a unit, 1249.

unit the whole season, 1249.

when unit of service is plainly indicated, 1250.
reasonableness of the period fixed, 1250.

quarterly period generally reasonable, 1250.

minimum rate distinguished from equipment charge, 1251.

meter rent a charge for facilities, 1251.

minimum charge clearly distinguishable, 1251.

initial unit distinguished from repeat unit, 1252.

journey is a single unit, 1253, 1254.

passenger cannot take two journeys for single fare, 1255, 1256.
resumption of journey by ejected passenger, 1258, 1259.

second journey on same train, 1260, 1261.

the shipment as the unit, 1263, 1264.
no freight without full delivery, 1266.
freight indivisible as a rule, 1268.

RATE REGULATION

1. Theories as to Rate Making

the legal, which gives chief place to the cost of service, 1190.
the economic, which makes the value of the service the basis, 1190.

general principles governing reasonableness, 1060.

the particular rate in the whole schedule, 1071.

legal restriction, 1190.

economic modification, 1190.

the value of the service to the patron, 1190.

making rates compared with levying taxes, 1075.

opportunists leave the making of rates to competition, 1190.
paternalists attempt to equalize the advantage of customers, 1190.
disproportionate rate to particular customers, 1190.

distribution of the burden, 1190.

proportionality in sharing costs, 1064.

2. Cost of Service as the Basis

cost of service includes fair share of fixed charges, 1191.
peculiar cost of a particular service, 1192.

separable costs of operation, 1193.

basis of the distribution, 1196.

proportionate share of different classes, 1197.

average cost per unit of service, 1198.
uniform ton-mile rate impracticable, 1198.

[References are to sections]

RATE REGULATION-continued

ton-mile cost basis not oppressive, 1210.

3. Factors Modifying Average Cost

cost of service is not always the decisive factor, 1203.
cost of service insufficient in itself, 1203.

theories as to relative rates, 1204.

average per cent of the gross receipts, 1208.

value of the service to the shipper, 1204.

the cost of service to the company, 1204.

weight, bulk, and convenience of transportation, 1204.
the general public good, 1204.
competition as a factor, 1204.
amount of service asked, 1205.

mileage covered, 1205.

local business peculiarly expensive, 1206.

local shipments are more expensive in proportion, 1206.

double terminal expenses, 1206.

lightness of the train loads, 1206.

shortness of the haul, 1206.

special conditions affecting cost, 1207.

expense of mountain division, 1207.

not all the extra cost of service should be charged, 1207.

proportionate rates always legal, 1209.

disproportionate treatment is discriminatory, 1210.

amount of service asked as a factor, 1200, 1024.
circumstances of particular service, 1208.

4. Value of Service as the Basis

what the traffic will bear, 1074, 1211.

fundamental in private business, but opposed to public duty,

1211.

increase of railroad rates when prices rise, 1212.

exploitation of the public, 1212.

necessity of legal limitation, 1212.

spoken of as the "ideal method," 1211.

undue burden upon the ultimate consumer, 1212.

worth of the service to the patrons taken as a whole, 1213.

cost of obtaining a substitute, 1214.

service not worth usual amount, 1077.

service of unusual value, 1076.

necessity of legal limitation, 1212.

many customers will pay exorbitant prices for service, 1212.

[References are to sections]

RATE REGULATION-continued

5. Rates Reasonable in Themselves

reasonableness of the separate rates, 1070.
rates unreasonable in themselves, 1072.
external standards of value, 1215.
reasonableness of switching rates, 1215.
current rates in the community, 1215.
conditions must be similar, 1215.
rates reasonable per se, 1216.

external standards as to fair rate, 1216.
the Kansas City stock yards case, 1217.
the Niagara bridge case, 1218.

these cases apparently distinguishable, 1219.
what is prima facie reasonable, 1219.
reasonable profit on each transaction, 1217.
what profit may be reasonable, 1218.
admissibility of evidence, 1215.

6. Economic Principles Affecting Rate-Making

law of decreasing costs, 1220.

additional business done at a decreasing relative cost, 1220.

exceptions to law of decreasing cost, 1221.

phenomenon of increasing cost with increasing business, 1221.

rule inapplicable to telephone service, 1221.

competition as a factor, 1222.

disproportion between individual rates, 1222.

presence or absence of competition material, 1222.

policy for permitting competitive rates, 1223.

necessary limitation upon these principles, 1224.

any discrimination in public service is abhorrent, 1124.

both absolute and relative discrimination indefensible, 1124.

equalization of commercial advantage, 1122.

courts not required to make rates, 1125.

argument against preferential rates, 1126.

equalizing commercial advantages between localities, 1126.

equalizing values between commodities, 1126.

conclusion as to proportionate rates, 1127.

conflicting theories still persist, 1228.

discriminatory treatment, 1210.

different items proportionate, 1210.

REBATING

See DISCRIMINATION

REBEL OFFICER

[References are to sections]

no liability to rebel officer going to the front, 604.
See ILLEGALITY

RECEIVERSHIP

bondholders sometimes postponed in, 352.

RECONSIGNMENT

on through rate, 1380.

REFERENCES

may be required, 603.

REFINERIES

should have switch connection, 817.

REFRIGERATION COMPANIES
status doubtful, 116.

REFRIGERATOR LINES
as public services, 37.

as common carriers, 154.

REFUSAL

See EXCUSE; JUSTIFICATION

REGISTER

See INN

REGULATION OF PUBLIC SERVICE

nature of the power to regulate, 1401.

this power of limitation or regulation is not without limit, 1122.

control of public employment, 1400.

character of the power to regulate, 1401.

power to regulate not a judicial power, 1402.

power to regulate not strictly legislative, 1403.

legislative and administrative functions contrasted, 1403.

power to regulate is administrative, 1404.

method of exercising the power to regulate, 1407.

delegation of regulating power, 1408.

regulation by administrative commissions, 1409.

establishment of the power to restrict charges, 1061.

power of Congress to regulate, 1420.

Congress might itself prescribe the rates; or it might commit to

some subordinate tribunal this duty, 1420.

See CONSTITUTIONAL LAW; STATUTES

[References are to sections]

REGULATIONS FOR PATRONS' CONDUCT

the function of regulations, 860.

large discretion given companies, 860.
regulations must be in good faith, 860.

whole rule must be shown to be unreasonable, 860.
regulations governing the conduct of officials, 862.
regulation cannot be enforced against law, 457.
regulation can be enforced in dispute, 458.

1. Establishment of Regulations

who may make regulations, 861.

part of that right of management, 861.

general managers may make regulations, 861.

district managers additional ones, 861.

regulations take effect upon subordinate officers, 861.

inferior cannot set aside the regulations, 861.

publication of regulations, 862.

due notification must be given, 862.
general publication is requisite, 862.
regulations printed on tickets, 862.
private instructions to officials, 862.
method of changing regulations, 863.
suspension of regulations, 863.
due notice must be given, 863.
waiver of regulations, 864.

waiver either express or customary, 864.

power to make waiver, 864.

acquiescence in continual disobedience, 864.

regulation waived, 460.

essential elements to valid regulation, 865.

right of regulation may be abused, 865.
enforcement of regulations, 866.
inherent power to enforce, 866.
regulation maliciously enforced, 552.
may expel those who violate, 866.
regulation enforced by expulsion, 447.
ejection must be properly done, 866.
no power to fix a pecuniary penalty, 866.
service may be shut off, 866.

2. Regulations Governing the Service

regulations limiting the undertaking, 867.
rules establishing priorities, 867.

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