THE ACT CREATING THE BUREAU OF CORPORATIONS;
THE ELKINS ACT; THE ACT TO EXPEDITE SUITS IN
THE FEDERAL COURTS; ACTS RELATING TO
TELEGRAPH, MILITARY, AND POST ROADS;
SAFETY APPLIANCE LAW AFFECTING
EQUIPMENT OF CARS USED IN INTER-
STATE COMMERCE, WITH ALL
AMENDMENTS.

WITH COMMENTS AND AUTHORITIES

AND

A SUPPLEMENT

Embracing all Federal Legislation of 1906, relating to carriers and inter-
state commerce including the " Railway Rate Bill of 1906," The
Employers' Liability Bill, Pure Food Bill, Meat Inspection Bill
and the Hall-Mark or Jewelers' Liability Bill, with
full notes of decisions.

COPYRIGHT, 1904

BY WILLIAM L. SNYDER

COPYIGHT, 1906

BY WILLIAM L. SNYDER

SEP 22 1920

PREFACE.

Congress, in the exercise of its power to regulate interstate commerce, in 1887 passed the first general law on the subject, which was approved February 4th of that year. The act is entitled "An Act to Regulate Commerce." In 1890 this Commerce Act was supplemented by an act to prohibit contracts in restraint of trade, entitled "An Act to protect trade and commerce against unlawful restraints and monopolies," approved July 2, 1890. This act is known as the Sherman AntiTrust Law. It is universal in its application, and embraces not only carriers, but manufacturers and producers.

The principal object of the Interstate Commerce Act was to give to every man engaged commercially equality of opportunity, and to place all shippers as to rates and tariffs upon an absolute equality. The principal evil complained of, which complaints finally resulted in the passage of the Commerce Act, was the practice of discrimination by the great carrying and transportation companies, whereby they gave to certain favored shippers an unjust and unreasonable preference and advantage, by carrying their goods and commodities at a less rate than was given to their competitors. This discrimination enabled the favored shippers to undersell their competitors, destroy competition, and drive out of business thousands who had spent their lives in acquiring mercantile training, and had invested their means in mercantile pursuits.

Indeed in some instances it has been shown that the favored shippers directly benefited, were also officers and directors of the carrying companies giving the rebates.

The discrimination complained of was not confined to favoritism to individual shippers. Communities and localities were discriminated against by giving lower freight rates to points at a much greater distance from the point of origin, in the same general direction, thus enabling merchants in a particular locality to make prices which their competitors in less favored localities could not meet. The result was ruin to many business communities. Cities and towns on a line of railway were built up at the expense of other cities and towns. Merchants in one one locality were discriminated against in favor of those in another to an extent that practically compelled those discriminated against to relinquish business. Equal opportunity was denied. Trusts and monopolies were the legitimate fruits of such discrimination. The favored shipper also became the favored manufacturer.

The discrimination aimed at included also discrimination among carriers themselves, who in some instances denied to competing connecting lines equal facilities for through transfers and connections.

The beneficial results which had been anticipated by those through whose instrumentality this remedial legislation had been secured were not realized. Prior to 1903, the statutes relied upon to secure the remedy were found to be difficult to enforce, due in a measure to the delay in securing an interpretation of the law by the Supreme Court of the United States. Commercial enterprises and business activity could not survive the