Louis Brandeis

“ Cost of the service is one of the elements in rate making. It may be just to give the prosperous carrier a smaller proportion of the increased rate than of the original rate. Whether the rate is reasonable may depend largely upon the disposition which is to be made of the revenues derived therefrom.
What the Commission did was to raise the additional revenues needed by the New England lines, in part, directly, through increase of all rates 40 per cent. and, in part, indirectly, through increasing their divisions on joint rates. ”

“ That the evidence left in the minds of the Commission many doubts, is true. But it had brought conviction that the New England lines were entitled to relief; that the divisional arrangements of the carriers required a thorough revision to put them upon a more logical and systematic basis; that a horizontal increase of the New England lines' divisions, made before such revision, would leave some divisions too high and others too low; that the comprehensive revision proposed would necessarily take a long time ”

“ A full hearing is one in which ample opportunity is afforded to all parties to make, by evidence and argument, a showing fairly adequate to establish the propriety or impropriety, from the standpoint of justice and law, of the step asked to be taken. The Commission recognized, and observed, these essentials of a full hearing. ”

“ Papers on the Commission files are not a part of the record in a case, unless they are introduced as evidence It is the nature of the inquiry, not the accident whether papers are on file or published, which determines whether facts can be proved by evidence which is typical. ”

“ The credit of the carriers, as a whole, had been seriously impaired. To preserve for the nation substantially the whole transportation system was deemed important. By many railroads funds were needed, not only for improvement and expansion of facilities, but for adequate maintenance. On some, continued operation would be impossible, unless additional revenues were procured. A general rate increase alone would not meet the situation. There was a limit to what the traffid would bear. A 5 per cent. increase had been granted in 1914, The Five Per Cent. ”

“ Raising joint rates for the benefit of the weak carriers might be the only feasible method of obtaining currently the needed revenues. Local rates might already be so high that a further increase would kill the local traffic. The through joint rates might be so low that they could be raised without proving burdensome. ”

“ Section 208 (b) of Transportation act of 1920 provided that all divisions of joint rates in effect at the time of its passage should continue in force until thereafter changed either by mutual agreement between the interested carriers or by state or federal authorities. ”

“ One of these, the Illinois Central, withdrew; 39 intervened later as plaintiffs. Leading trunk lines-the New York Central, the Pennsylvania, and the Baltimore & Ohio-by which a large part of all traffic interchanged with the New England railroads was carried, acquiesced in the Commission's order.↑ Thus: To enable the carriers 'properly to meet the transportation needs of the public,' section 422, p. 491; to give due consideration to 'the transportation needs of the country, and the necessity * * * of enlarging [transportation] facilities,' section 422, p. ”

“ Case, 45 I. C. C. 303. See also the successive orders issued in the Shreveport controversy, 23 I. C. C. 31; 34 I. C. C. 472; 41 I. C. C. 83; 43 I. C. C. 45; 48 I. C. C. 312. Compare Houston & Texas Ry. Co. ”