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Suspension of lake navigation during the winter months is not an elimination of water competition, and during these months higher rail rates may be justified,223 although the explanation seems unsatisfactory.

Whether or not the paragraph in question puts the burden of justifying increases of rates that were lowered prior to the Amendment enacting it, effective June 18, 1910, is immaterial, as that burden exists as to all rates advanced since January 1, 1910, by virtue of Section 15.224

§ 294. Railroad-Owned Steamships. A rail carrier may not own or control a water carrier in competition therewith,225 but jurisdiction is conferred upon the Commission to "determine questions of fact as to the competition or possibility of competition" upon application of a railroad company or other company praying for an order permitting the continuance of such ownership or control of vessels already in operation or permitting the installation of new service.

The Commission may, on its own motion make such investigation and enter an order thereon. There must be a hearing and the order of the Commission is made final. On such hearing, if the Commission shall be of the opinion that any such existing service by water "other than through the Panama Canal is being operated in the interest of the public and is of advantage to the convenience and commerce of the people, and that such extension will neither exclude nor reduce competition," it may extend the time during which such carrier-controlled water vessels may be so operated. The water carriers must, in that event, file tariffs of their rates, schedules and practices. Such applications must be made before July 1, 1914, but may be considered and disposed of thereafter.226

§ 295. Changes in Tariffs.-Changes in rates, fares and charges, or in joint rates, fares and charges, may not be made except after thirty days notice to the Commission and to the

223 American

Insulated Wire & Cable Co. v. Chicago & N. W. Ry. Co.,

26 I. C. C. 415, 416.

224 Re Pig Iron Rates from Virginia, 27 I. C. C. 343, 345.

225 Sec. 5 of Act; Sec. 250, ante; Sec. 444, post.

226 Sec. 5 of Act; Sec. 446, post; Sec. 250, ante.

public; but the Commission is granted a discretion, "for good cause shown," to allow changes on less notice, and may modify the requirements in respect to publishing, posting and filing tariffs. This may be done in particular instances or by general order.227

Speaking of this provision, the Commission said: "It is believed that this authority should be exercised only in instances where special or peculiar circumstances or conditions fully justify it. Confusion and complication must follow indiscriminate exercise of this authority." Clerical or typographical errors constitute good cause.228

General orders permit the reduction of a through rate to the aggregate of the intermediate locals and the filing of tariffs by new roads in less than thirty days.229

§ 296. Forms of Tariffs.-The power granted the Commission to determine and prescribe the form of tariff schedules and to change that form when expedient has been exercised by prescribing rules in Tariff Circular No. 18-A and supplements thereto, and in a reissue thereof with numerous changes designated as Tariff Circular No. 20.

§ 297. Through Routes.-After full hearing, on complaint, or upon its own initiative without complaint, the Commission may establish through routes and maximum joint rates between rail and water lines.230

Where a rail carrier enters into arrangements with any water carrier operating from a port of the United States through the Panama Canal or otherwise for the handling of through business between interior points in the United States and such foreign country, similar arrangements may be required with any or all other lines of steamships operating from the same port to the same foreign country.231

Orders with reference to action authorized as herein stated

227 Sec. 6 of Act; Sec. 451, post. 228 Tariff Circular 20, Rule 58, also prescribing a form of application to exercise the authority.

229 Tariff Circular 20, Rules 56 and 57.

230 Sec. 468, post.

231 Sec. 6 of Panama Canal Act, par. (b); Sec. 468, post.

shall be served and enforced as orders under Section 15 of the Act232 and may "be conditioned for the payment of any sum or the giving of security for the payment of any sum or the discharge of any obligation which may be required by the terms of" the order.233

Power is also given the Commission, after hearing, with or without complaint, to establish through routes and joint classifications and joint rates and the divisions thereof, when there is a failure of the carriers so to do. This does not apply to connections between street electric-passenger railways not engaged in the general business of transporting freight, and railroads of a different character. In establishing such a through route, reference must be had to the entire line of a carrier.234

Subject to the limitation stated in the statute, the Commission has a discretion as to when it will order through routes.235 The complainant asking for a through route should show himself "capable financially and physically" of assuming the obligations such routes would impose.236

In fixing the divisions between carriers, the Commission must "take into consideration all the circumstances, conditions, and equities. '237

§ 298. Complaints for Damages. In claims for damages a complaint must be filed with the Commission. This complaint frequently seeks to have a particular rate or practice declared illegal, and in the same complaint asks for an order fixing the Commission's finding as to the amount of damages

232 Sec. 6 of Act, par. (d); Sec. 470, post.

233 Last par. Sec. 6; Sec. 471, post. 234 Sec. 15 of Act; Sec. 241, ante; Sec. 497, post.

235 Crane Iron Works v. United States, 209 Fed. 238, Com. Ct. Opinion No. 55, p. 453, 461, cited, Truckers Transfer Co. v. Charleston & W. C. R. Co., 27 I. C. C. 275.

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Pennsylvania R. Co., 12 I. C. C. 326;
Baltimore & Carolina S. S. Co. v. A.
C. L. R. Co., 49 I. C. C. 176.

237 Star Grain & Lumber Co. v. Atchison, T. & S. F. Ry. Co., 14 I. C. C. 364, 370. See also Section 242, ante, and Sec. 493, post. The revenue needs of weak carriers may also be an important consideration in fixing divisions, New England Divisions Case, 261 U. S. 184, 67 L. Ed. 605, 43 Sup. Ct. 270.

the complainant is entitled to recover. It is not proper to divide up a complaint by first asking a finding that the rate or practice is illegal, and thereafter, by supplemental complaint, to seek damages.238

Many informal complaints for damages are filed and allowed. These are in cases where the carriers concede that an award should be made.239 Informal complaints are sufficient to give the Commission jurisdiction.240 The general principles applicable to the question are stated by the Commission to be the intent of Congress to provide a method of obtaining an award of damages without resort to the expensive and tedious processes of the law, and that the Act should be construed with that view.241

The Commission prescribes rules to which it adheres. These rules are copied in Section 321, post. Where informal complaints are filed as provided in the Rules of Practice, and relief is denied on the informal docket, a formal claim must be filed within six months of such denial, if the two years have expired, else the claim will be regarded as abandoned.

§ 299. Same Subject-Order of Commission. Until the act complained of is found to be violative of the law no award of damages can be made. In the procedure before the Commission evidence is heard as to the illegality of the rate, regulation or practice under investigation and as to the fact of damages. If, after the hearing, it is found that complainant or one in whose behalf the complaint is filed has suffered injury by a violation of the law and the fact of legal damage is established, the Commission directs how proof of the amount of damages shall be made, and when such amount is ascertained an order therefor is made. What must be shown to fix this amount is stated by the Commission as follows:

"The complainants will be expected to prepare statements

238 Dallas Freight Bureau v. Gulf, C. & S. F. Ry., 12 I. C. C. 223, 228. 239 Conference Ruling 396, Feb. 10, 1913, since withdrawn without affecting the principle.

240 Marian Coal Co. v. Delaware,

L. & W. Ry. Co., 27 I. C. C. 441;
Mountain Ice Co. v. Delaware, L. &
W. Ry. Co., 21 I. C. C. 45.

241 Michigan Hardwood
Assn. V. Transcontinental
Bureau, 27 I. C. C. 32, 37.

Mnfrs. Freight

showing as to each shipment upon which reparation is claimed the date of movement, the point of origin, the point of destination, the route, the weight, the car number and initials, the rate applied, the charges collected, and the amount of reparation claimed. These statements, with the freight bills covering the shipments, should be submitted to the defendants for verification by them. Upon the receipt of statements so prepared by the complainants and verified by the defendants, the Commission will take the matter up with a view to the issuance of an order of reparation. ' '242

This rule has been elaborated and is now Rule V of Rules of Practice-Section 323, post.

In case damages are awarded, the Commission must make a report and state the findings of fact on which the award is made, 243 and on a trial in court to recover on such award the findings of fact set forth in such report shall be prima facie evidence of the matters therein stated.244

§ 300. General Investigations. In the exercise of its power to obtain complete information necessary to enable it to perform the duties and carry out the objects for which it was created, the Commission makes investigations into the management of the business of the carriers subject to the provisions of the Commerce Acts. This authority extends to any matter or thing concerning which a complaint is authorized to be made or about which any question may arise or which relates to the enforcement of any provision of the Act.245

No particular form of procedure is prescribed for these investigations, but in a similar kind of investigation, that fixing accounting regulations, the Supreme Court stated as a material fact that the investigation proceeded "with due deliberation and after proper inquiry."246 The Bills of Lading

242 Standard Mirror Co. v. Pennsylvania R. Co., 27 I. C. C. 200, 209. 243 Sec. 14 of Act; Sec. 487, post. 244 Sec. 16 of Act; Sec. 520, post; Lehigh Valley R. Co. v. Clark, 207 Fed. 717, 125 C. C. A. 235; Mills v.

Lehigh Valley R. Co., 238 U. S. 473,
59 L. Ed. 1414, 35 Sup. Ct. 888.
245 Ante, Secs. 267, 268.

246 Kansas City S. Ry. Co. v. United States, 231 U. S. 423, 58 L. Ed. 296, 34 Sup. Ct. 125.

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