annual report of 1897, p. 62, it reviewed the subject and its prior recommendations and said that at the time of the adoption of the Interstate Commerce Act of 1886 classifications were nearly as numerous as the railroads and led to endless confusion. Some classifications contained not less than thirty-three classes, and even in later years in some of the southern states there were classifications in use containing as many as twenty-two classes of freight. The subject was complicated by the local interests involved in different parts of the country which it was claimed required distinct classifications. The commission said that many of the complaints before then were based upon discriminations and injustices arising from the different classifications in use in the United States. The evil has been measurably reduced by the growth of "community of interests" among railroads and the consolidations of connecting lines, but the differences and resulting confusion are still very great. The commission has consistently urged upon the railroads of the country their co-operation in the adoption of a uniform classification. See 21st annual report 1907, p. 19, where it repeats its opinion that a single classification was regarded as essential to insure compliance with the law and to promote greater economy in administration and conduct of transportation. The commission conceded that it was a task of great magnitude and that it was evident that the carriers themselves by mutual concessions and through voluntary and harmonious action could accomplish the result better than if congress or some delegated tribunal established a classification for them. The commission said that it was advised that the carriers operating the several classifications in different territories, had created a central committee consisting of persons specially qualified to engage in a highly technical work involved in the unification of classifications. In view of the fact that the control of classifications is expressly delegated to the commission by the recent amendments of the act, it says significantly in the report of 1910: "From the progress of the work as stated it appears that the carriers are making a sincere effort to harmonize as far as possible the conflicting features of the various classifications, but the stimulus of requirement should be applied unless satisfactory results at an early day indicate that the desired uniformity will be brought about by voluntary action."

§ 274 (207). Consultation of carriers in classification not illegal combination.-In the report of 1899, pp. 12 to 20, the commission discussed the question of the advance in freight rates by the carriers using what is known as the official classification, covering the territory lying east of the Mississippi and north of the Ohio and Potomac rivers, and in that connection gives the opinion of the attorney-general of December 30, 1899, to the effect that consultation by the representative railroad men in the committee respecting suggested changes in classification, and subsequent independent action by the respective railroad companies by the adoption of the new classification recommended, in the absence of any testimony of compulsion or combination in adopting a classification, was not in violation of the Anti-Trust law.

§ 275 (208). Undue preference in classification.-Undue preference may be effected by discrimination in classification between commodities which are in fact competitive, where such classification is not based on a difference in the cost of service. The English statute of 1854 was construed as imposing upon the carrier the burden of justifying such discrimination by considerations relating to the cost of carriage. Oxlade v. N. E. Ry. Co., 1 Ry. & Canal Traffic Cases, 73; Thompson v. London & N. W. Ry. Co., 2 Ry. & Canal Traffic Cases, 115. This general principle has been applied by the commission in a variety of cases. Thus, the advance of hay and straw from the 6th to the 5th class on the official classification of January 1, 1900 (see 9 I. C. C. R. 264), was ruled unreasonable and unjust as resulting in unlawful discrimination and prejudice against the localities where such commodities are produced, and against producers, dealers and consumers. As to the governing principles of freight classification, see 6 I. C. C. R. 148 and 4 Int. Com. Rep. 525; 9 I. C. C. R. 78. See also 3 I. C. C. R. 473, 2 Int. Com. Rep. 742.

In 4 I. C. C. R. 212, 3 Int. Com. Rep. 257, it was said that where questions of classification and rates are involved as to one particular article of freight, it is often necessary to examine and consider the classifications and rates upon other articles in which the same calculations in respect to value, bulk and expense of handling and carriage would to a considerable extent enter. For the purpose of such comparison it is not in

dispensably necessary that the articles should be competitive, though if they are competitive, then this feature is held partly to be considered. The proper method of determining the justice of classification by comparison, is with classification created by the carrier for analogous articles. 5 I. C. C. R. 638, 4 Int. Com. Rep. 285. The fact that different rates and classifications are in force in different sections of the country would not of itself warrant an extension of the lower rate of classification to the higher rate and classification as applied. There must be proof of unlawful discrimination or disadvantage or unreasonably higher rates to procure an order directing different rates and classification. 6 I. C. C. R. 61.

In 6 I. C. C. R. 85, a commodity (i. e. not classified) rate published for intending settlers only, but in fact given to shippers indiscriminately was condemned by the commission as calculated to mislead the public and afford an opportunity for favoritism.

For illustrations of the rulings of the commission in cases in classification, see 2 I. C. C. R. 1, 2 Int. Com. Rep. 1, where classification of dried fruit and raisins in two different classes was ruled unreasonable.

Hub blocks were classed with lumber, instead of with unfinished wagon materials. 2 I. C. C. R. 122, 2 Int. Com. Rep. 81. In 1 I. C. C. R. 393, 1 Int. Com. Rep. 685, railroad ties were classed with other rough lumber.

In 2 I. C. C. R. 573, 2 Int. Com. Rep. 403, Hostetter's Stomach Bitters were ruled not properly classified in the first class with other liquids similar in character. In 4 I. C. C. R. 32, 3 Int. Com. Rep. 74, patent medicines were ruled properly classed at a higher rate than ale, beer and mineral water

In 4 I. C. C. R. 41, 3 Int. Com. Rep. 77, toilet soap was ruled properly classed higher than laundry soap, the commission holding that manufacturer's description of his production for commercial purposes warranted a classification acordingly. See also 4 I. C. C. R. 733, 3 Int. Com. Rep. 564.

5 I. C. C. R. 663, 4 Int. Com. Rep. 318, ruled that celery was properly classified with vegetables rather than with fruits. In 6 I. C. C. R. 148, in view of the great reduction in value of window shades, the classification as first class was held unreasonable. The United States circuit court, in 64 Fed. 724 (1894), declined to enforce this order on the ground that it applied to

shades having a very high value as well as to the cheaper varieties, and the order was amended accordingly. 6 I. C. C. R. 548. In 7 I. C. C. R. 40, open-end envelopes were ruled properly classed with merchandise envelopes.

In 8 I. C. C. R. 368, iron pipe and fittings packed in cases were ruled properly classed higher than iron pipe and fittings packed in barrels. 6 I. C. C. C. 61, ruled that there were conditions compelling a low rate upon flour which did not apply in the transportation of cereal products.

In 4 I. C. C. R. 212, 3 Int. Com. Rep. 257, the principles of classification were discussed, and applied in the case of surgical chairs. In 10 I. C. C. R. 281, cow-peas were ruled properly classed with grain, and not with fertilizers.

In 12 I. C. C. Rep. 216, the commission said that classification must be based upon a real distinction from a transportation standpoint, and could not depend upon the uses of the commodity after reaching the destination. If the matter was considered from any other than a transportation standpoint, it would lead to an almost endless multiplication of rates. Thus it was ruled in 13 I. C. C. Rep. 109, that the inclusion of wire brushes and brooms not toilet in cases of less than carloads, in the first class, was unreasonable, and they were ordered classified in the third class; while the inclusion of new and old automobiles in the same class was found in 15 I. C. C. Rep. 27, not to be unjust, as no convenient line could be drawn between old and new machines of different values in transportation.

In 21 I. C. C. R. 518, classification of earthen crucibiles at third class in less than carloads and fourth class in carloads, was held unjust and discriminatory.

§ 276 (209). Power of the commission in correcting classification. The commission has in a number of cases exercised the power to order a change in the classification, as in the cases before cited; also in 1 I. C. C. R. 393, 1 Int. Com. Rep. 685; 2 I. C. C. R. 122, 2 Int. Com. Rep. 81; 4 I. C. C. R. 312, 3 Int. Com. Rep. 257; 6 I. C. C. R. 148, 4 Int. Com. Rep. 525.

Assurance made by a carrier that if one will locate in business on the line of his road his property shall be taken for transportation as belonging to a specified class, it was ruled by the commission in 2 I. C. C. R. 122, 2 Int. Com. Rep. 81, could not bind the carrier so as to compel a classification accordingly.

There can be no contract right to a special classification, as the law requires uniformity and impariality in the dealings of the carrier with all persons.

The subject of classification was considered by the supreme court in C. H. & B. R. Co. v. Interstate Com. Com'n, 206 U. S. 142, 51 L. Ed. 995 (1907), affirming 146 Fed. 559.

The court in this case sustained the order of the commission, directing the carrier to cease from further charging the freight rate for common soap in less than carload lots operating throughout official classification territory, increasing the classification from fourth to third class, which was found to have brought about a general disturbance in relations previously existing in the territory, and creating discriminations and preferences among manufacturers and shippers of the commodity and between localities in such territory. The court said that the findings of the commission, that a classification of freight rates produced preferences and discriminations would not be interfered with on appeal, when concurred in by a federal circuit court, unless the record established that clear and unmistakable error had been committed. For the order of commission, see 9 I. C. C. R. 440.

§ 277 (210). Reasonable regulations in classifications.-The commission has ruled, 6 I. C. C. R. 61, that the fact that different rates and classifications are in force in different sections of the country would not itself warrant an extension of the lower rate and classification to the section where a higher rate and classification were applied. There must be proof of unlawful discrimination or disadvantage or of unreasonable higher rates to justify directing an order for changes in the classification. In this case it was ruled that a mixed carload rate for cereal products or for cereal products and flour, that would have the effect of throwing out of the trade many competitors of complainant, or the manufacture only of certain kinds of cereal products and of centralizing the busines in the hands of one or more of the dealers, should not be curtailed, when without it no wrong is done to any one and the market is open to all competitors. The commission said therefore that to obtain the abrogation of a rule in classification denying a mixed carload rate upon specific articles, the rule should be shown to be unreasonable, unfair or unjustly discriminative.