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Much of the confusion existing throughout the State in discussing the "Standard Freight Tariff" has been due to the fact that comparisons were made of old joint rates with rates made by combining the sum of the local rates of the roads over which the freight passed, instead of comparing local with local. Indeed, joint rates of the Commission were criticised before such rates had been issued or even decided on.

Joint Rates. This term has been adopted to signify rates between a point of shipment on one railroad and a point of destination on another, when the two railroads are not controlled by the same company. In dealing with joint rates the Commission have been embarrassed partly by a doubt as to their authority to fix such rates below the combined locals of the roads concerned, and partly by the difficulty of reconciling in practice two principles embodied in the Statute. The question of authority turns upon omission of "joint rates" from the proviso of Section 31, General Railroad Act, (1443 General Statutes,) which relates only to through rates and places between "terminal or junctional competitive points." The difficulty of fixing the rates arises thus: from one point of view it seems just, reasonable and consistent that a joint haul by two railroads of say fifty miles should not cost the shipper more than a haul of fifty miles on either of the two roads; but, on the other hand, if joint rates are adjusted on this basis, each road might, by a strict construction of the law, be required to reduce its whole local tariff to the scale of its proportion of such joint rates.

The whole matter can be satisfactorily dealt with by amending Section 31, General Railroad Act, (being 1443 General Statutes,) so as to read as follows: "Provided, That nothing in this Act contained shall be so construed as to require any corporation or combination of corporations to regulate their charges for shorter distances by their proportion of joint rates, or of through rates between terminal or junctional competitive points."

Through Rates.-The members of the Commission differed in opinion as to their power to prescribe rates for the carriage of freight to or from points beyond the limits of the State, and referred the question to the Attorney General. His very forcible and comprehensive opinion (appended hereto) has resolved the doubts, and as soon as the time of the Commission will allow them to take up this intricate and difficult subject an effort will be made to apply the law to it. The Commission has been so closely occupied in preparing this Report since the receipt of the "Through Tariffs" submitted by the railroads as to prevent an examination of them. A glance at these rates, however, shows that some have not been made in accordance with principles laid down by the

Commission. They will be examined and adjusted as soon as the work on this Report is finished.

Classification. The labor of preparing the Classification has been most arduous. This Classification has been adopted by all the roads doing business in the State for local freight. As it was shown that to apply the system of classification adopted by the Commission to through business from points beyond the State, accustomed to work under a different system, would produce inconvenience and disorder, Circular 6 allowed the railroads in the State to use, until further notice, the Classification of the Southern Railway and Steamship Association for freight coming from or going beyond the limits of the State.

Passenger Rates.-For the purpose of fixing passenger rates, the railroads in this State have been divided into three classes, A, B and C. The maximum rate for any one passenger with 100 pounds of baggage on roads in class "A" has been fixed at three (3) cents per mile; in class "B" three and a half (31) cents, and in class "C" four (4) cents; and for children over five (5) and under twelve (12) years of age half of the above rates. The roads, however, are allowed to charge twenty-five (25) cents as a minimum full rate, and fifteen (15) cents as half rate when the fare falls short of those amounts. The roads are also allowed to charge half (1) cent per mile advance on full rate and quarter (4) cent on half rates to passengers without ticket, provided the ticket office shall have been opened for a reasonable time before the departure of the train; and each passenger unprovided with a ticket may be required to pay to the conductor twenty-five (25) cents additional to amount of fare, upon receiving from such conductor a ticket good for twenty-five (25) cents upon presentation at any ticket station of the company.

In Circular 3, issued and published with the Standard Schedule, etc., and by Section 4 of Circular 7, and Section 2 of Circular 9, the railroads have been classed and placed as follows:

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CLASS A." (3 CENTS PER MILE.)

Atlanta and Charlotte Air Line Railway...... (old rate 4 cents per mile) Central Railroad of South Carolina.......

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CLASS "C." (4 CENTS PER MILE.)

Asheville and Spartanburg Railroad..........(Old rate 5 cents per mile) In Class "C," the Asheville and Spartanburg Railroad, a short and unprofitable line, stands alone. The Columbia and Greenville Railroad and branches, the Spartanburg, Union and Columbia Railroad, and Laurens Railway, being considered as one and the same road, have been placed in Class "B." Had each been independent, the Columbia and Greenville Railroad would likely have been placed in Class "A," and the others (being less profitable) in either Class "B" or "C." By placing all in Class" B," an average rate is secured. It will be seen that the rate of fare on every road has been reduced. The Commission had no hesitation in fixing reduced rates. All railroad experience shows that low passenger rates have resulted in increased travel and larger receipts by the railroads.

Second Class Passenger Rates and Accommodation.-The Legislature, in most of the charters granted, fixed maximum passenger rates, but no second class rates, and the Commission, hesitating to assume a power which the Legislature had not seen fit to exercise itself, and being doubtful of their authority in the matter, on the 25th of October addressed a letter to the Attorney General on the subject, to which reply has been made as follows:

OFFICE OF THE ATTORNEY GENERAL, CHARLESTON, S. C., November 12, 1883. Hon. M. L. BONHAM, Chairman of the Board of Railroad Commissioners, Columbia, S. C.

DEAR SIR: I have received your communication in which you say: "As the Railroad Commissioners are in doubt as to their authority under the law to fix, for the railroads doing business in this State, second class passenger rates, and to require them to furnish second class

accommodation upon their roads, your opinion as to their power to do so is respectfully requested."

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The Railroad Commissioners are authorized and required to make reasonable and just rates of charges for freight and passenger tariffs to be observed by all railroad companies doing business in this State on the railroads thereof, *** and such just and reasonable rules and regulations as may be necessary for preventing unjust discrimination in the transportation of freight and passengers on the railroads in this State," (A. A., 21 December, 1882, § 6,) and "to make for each of the railroad corporations doing business in this State a schedule of just and reasonable rates of charges for the transportation of passengers and freight and cars on each of said railroads;" which schedule shall, in suits against said railroads involving charges, be deemed and taken in all Courts in this State as sufficient evidence that the rates therein fixed are just and reasonable rates. (Sec. 7.)

In pursuance of this authority and duty, the Railroad Commissioners have made for each of the rail road corporations doing business in this State a schedule of maximum rates, which shall be considered just and reasonable rates of charges for the transportation of passengers; and also passenger rules" in relation to full rates and half rates;" charges" for berths on sleeping cars;" against "unjust discrimination as to passenger rates in favor of or against any individual or locality."

Section 2 of the Act of 21st December, 1882, prohibits the railroad companies doing business in this State from making any unjust discrimination in rates for transportation of passengers or freight; and Section 3 declares what shall be deemed and taken against said companies as prima facie evidence of the unjust discrimination prohibited.

Common carriers are prohibited by § 2604 of the General Statutes of 1882, (Chapter CIX, "Of Offenses against Civil Rights,") from assigning any special accommodation whatever to any passenger they undertake to carry, or who shall, under any pretense, refuse any person applying for the same accommodation equal in every respect to that furnished by them to any other person for like compensation in a like case, having no regard to the persons per se who may be applicants. therefor; and are subjected to extraordinary penalties if such action is on account of the race, color or previous condition of the applicant, and such applicant is a colored person or a black person; but these provisions do not apply where different classes of accommodation are provided for all persons alike without discrimination of race or color.

It may, for the purposes of this opinion, be assumed that there is nothing in the law which can be reasonably construed to prohibit railroad companies from furnishing "second class" passenger cars and charging "second class fare" for transportation of passengers in such cars. (A

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