Law Commons^™

Carriers - Allocation Of Rate Charges On Cost Basis

Michigan Law Review

In a proceeding in equity to secure the annulment of an order of the Interstate Commerce Commission fixing the cost of icing, for shipments of poultry and dairy products originating in the six western states, on the "cost of ice" basis already existing in the other forty-two states, it was held that the rate is reasonable if it furnishes reasonable and adequate return for service rendered, and such return must pay cost of that service as distinguished from all other service, plus reasonable profit thereon; but that, in arriving at this "cost of ice" rate, the Interstate Commerce Commission was …