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263 U. S. 603, 68 L. ed. 470, 44 Sup. Ct. Rep. 212.

This section, as amended, contemplates that the carrier shall be required to recognize an additional class of passenger travel and to provide a special form of ticket which shall be used at just and reasonable rates fixed by the commission. The face of the amendment does not indicate on what basis an interchangeable mileage or scrip ticket should be issued. The spirit and intended theory is that carriers shall be required to sell such a ticket at something less than the standard fare, which would be just and reasonable, because sold in such quantities as to stimulate travel, and thereby increase new revenue or at least offset any loss in revenue resulting from the reduction.-Interchangeable Mileage Ticket Investigation, 77 I. C. C. 200, 647, order held invalid on this ground, as based on misconception of law, New York Central R. Co. v. United States, 288 Fed. 951, affirmed, United States v. New York Central R. Co., 263 U. S. 603, 68 L. ed. 470, 44 Sup. Ct. Rep. 212, in effect reversed on further hearing, Interchangeable Mile- | age Ticket Investigation, 98 I. C. C. 298.

The act is mandatory in that it directs the commission to require each carrier by rail to issue interchangeable mileage or scrip coupon tickets, but it is discretionary in that the commission may prescribe either an interchangeable mileage ticket or a scrip coupon ticket; the terms, conditions, rules, regulations, and the just and reasonable rates at which the form of ticket prescribed shall be issued.-Interchangeable Mileage Ticket Investigation, 98 I. C. C. 298.

3. Interchangeable mileage or scrip ticket defined.-See Mileage and scrip books, note 768, sec. 1 (5), this title.

The scrip ticket contemplates the issuance of a book of coupons which for passenger travel are equivalent to currency, the coupons being detached by

the ticket agent or conductor to cover the transportation charge at the time the service is performed. Interchangeable Mileage Ticket Investigation, 77 I. C. C. 200, 647, 98 I. C. C. 298.

4. Just and reasonable rates to be determined by commission.-Pursuant to this section, as amended, certain carriers by rail were required by order of the commission to issue nontransferable interchangeable scrip coupon tickets in the denomination of $90, to be sold at a reduction of 20 per cent from the face value of the ticket.Interchangeable Mileage Ticket Investigation, 77 I. C. C. 200, 647, order held invalid; see following paragraph.

This section does not require the commission to order such tickets to be issued at reduced rates, but at "just and reasonable rates," to be determined by the commission, and the order specified in the preceding paragraph, requiring the issuance of such tickets at reduced rates, not fixed by the commission in the exercise of its own independent judgment, but based on the erroneous interpretation of the statute, or on the assumed intention of Congress, was without warrant of law. New York Central R. Co. v. United States, 288 Fed. 951, affirmed, United States v. New York Central R. Co., 263 U. S. 603, 68 L. ed. 470, 44 Sup. Ct. Rep. 212.

As to what will be just and reasonable rates for interchangeable scrip coupon tickets, the commission must exercise its own independent judgment. Sound policy dictates that the basic fare should be the same for all classes and that the commission should require no departures from this rule unless it is dealing with a class of business which can be so segregated that a rate differing from the basic fare of one way should be applied. The basic or standard rate of fare of a 1-way ticket, as to Class I steam railroads, switching and terminal railroads excluded, is and will be a just and reasonable rate for the interchangeable

scrip coupon tickets required by this section; such tickets to be issued in denominations of $15, $30, and $90, and to be good for payment of the fare

of one or more passengers traveling at the same time.-Interchangeable Mileage Ticket Investigation, 98 I. C. C. 298, reversing 77 I. C. C. 200, 647.

Regulations of the Commission

In connection with the order requiring the issuance of a $90 interchangeable scrip coupon ticket, to be used at a discount of 20 per cent (later held to be invalid, as appears in the Notes of decisions, supra), “Rules and Regulations" were prescribed in a supplemental report, Interchangeable Mileage Ticket Investigation, 77 I. C. C. 200, 647. Upon the further hearing, after the original order had been held to be invalid, the commission, in its report on further hearing, vacated its original conclusions as to the use of such a book at a discount, and rules and regulations therefor, and found it should not prescribe rules and regulations different from those generally in effect, and required carriers to continue their already established rules and regulations, to be published, filed, and posted according to law, 98 I. C. C. 298.

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Section 22. (3) Penalty for failure to comply.-Any carrier which, through the act of any agent or employee, willfully refuses to issue or accept any such ticket demanded or presented under the lawful requirements of this chapter, or willfully refuses to conform to the rules and regulations lawfully made and published by the commission hereunder, or any person who shall willfully offer for sale or carriage any such ticket contrary to the said rules and regulations shall be deemed guilty of a misdemeanor, and upon conviction, shall be fined not to exceed $1,000. (Aug. 18, 1922, c. 280, 42 Stat. 827.) For text of complete section, of which this paragraph is a part, see pp. 66-68, ante.

Historical Note

See historical note to sec. 22 (2), this title.

Section 23. [Sect. 23 of the act of Feb. 4, 1887 (24 Stat. 387)the original act to regulate commerce-made an appropriation for the use and purposes of that act. The act of Mar. 2, 1889 (25 Stat. 862), contained a section not in terms made a part of the act to regulate commerce, but recognized as sec. 23 of that act by the Hepburn Act of June 29, 1906 (34 Stat. 595), which added a new section at the end of the act to regulate commerce, as amended, numbered 24. The section contained in the act of Mar. 2, 1889, now appears in sec. 49 of this title.]

Section 24. [This section, added by the act of June 29, 1906 (34 Stat. 595), and amended by the acts of Aug. 9, 1917 (40 Stat. 270), and Feb. 28, 1920 (41 Stat. 497), has been restated in secs. 11 and 18 of this title.]

"act" instead of "chapter" in original act.

46988-S. Doc. 166, 70-1, vol 4- 8

Section 25. Schedules and rates of water carriers in foreign commerce.-(1) Schedules to be filed by carriers by water in foreign commerce.- -Every common carrier by water in foreign commerce, whose vessels are registered under the laws of the United States, shall file with the commission, regularly as changes are made, a schedule or schedules showing for each of its steam vessels intended to load general cargo at ports in the United States for foreign destinations (a) the ports of loading, (b) the dates upon which such vessels will commence to receive freight and dates of sailing, (c) the route and itinerary such vessels will follow and the ports of call for which cargo will be carried. (Feb. 28, 1920, c. 91, sec. 441, 41 Stat. 497.)

For text of complete section, of which this paragraph is a part, see pp. 69-70, ante.

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"within thirty days after this section becomes effective and regularly thereafter Instead of "regularly" in original act.

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Section 25. (2) Quotation of rates by carriers by water; reservation of space.-Upon application of any shipper a carrier by railroad shall make request for, and the carrier by water shall upon receipt of such request name, a specific rate applying for such sailing, and upon such commodity as shall be embraced in the inquiry, and shall name in connection with such rate, port charges, if any, which accrue in addition to the vessel's rates and are not otherwise published by the railway as in addition to or absorbed in the railway rate. Vessel rates, if conditioned upon quantity of shipment, must be so stated and separate rates may be provided for carload and less-than-carload shipments. The carrier by water, upon advices from a carrier by railroad, stating that the quoted rate is firmly accepted as applying upon a specifically named quantity of any commodity, shall, subject to such conditions as the commission by regulation may prescribe, make firm reservation from unsold space in such steam vessel as shall be required for its transportation and shall so advise the carrier by railroad, in which advices shall be included the latest available information as to prospective sailing date of such vessel. (Feb. 28, 1920, c. 91, sec. 441, 41 Stat. 497.)

For text of complete section, of which this paragraph is a part, see pp. 69-70, ante.

Historical Note

This section was added by transportation act, 1920.

Notes of Decisions

1. Nature of rail carrier's duty.Engagement of ocean freight space is no part of inland transportation, and is not subject to tariff regulations. Loma Fruit Co. v. International Nav. Co., 11 Fed. (2d) 124, certiorari denied, Atchison, T. & S. F. Ry. Co. v. Loma Fruit Co., 270 U. S. 662, 70 L. ed. 787, 46 Sup. Ct. Rep. 471. (Editorial comment: The proceeding arose prior to the transportation act, 1920, and did not arise out of any violation of this section.)

Rail carriers ought not, in advance of information as to the route and rate, to issue a bill of lading which is really signed upon the authority of the ocean carrier, and it is not unreasonable to require that they should first confirm the engagement between the ship agents and shippers.-Galveston Commercial Assn. v. Atchison, T. & S. F. Ry. Co., 25 I. C. C. 216.

But compare Mobile Chamber of Commerce v. Mobile & O. R. Co., 32 I. C. C. 272, holding, because of abuses arising out of the requirement that the shipper first give the name of the ship, the ocean rate, and confirmation of the engagement with the ship agent, that it would seem that a proper solution would be to follow the system in vogue at other ports and to be sufficient if the shipper simply designated the wharf or dock at which he wished delivery to be made. (Editorial comment: This and the preceding case were decided prior to enactment of the transportation act, 1920.)

2. Liability of rail carrier for cancellation of reservation.-A rail carrier, which has no contract for the inland transportation, but only an expectation, under the prevailing custom, that it might obtain such contract in

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