This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
The legislature may fix rates for transportation by rail,1 or for grain elevators,2 if reasonable. A commission fixing railroad rates must, however, give a hearing to such railroad company before fixing such rates.3 If such rates are unreasonable, as where they are less than the cost of such service,4 such statutes are, in effect, a taking of private property without due process of law, and are invalid. A statute which makes a common carrier5 or a telegraph company6 liable facts, own negligence or that of its employes in spite of its contract to the contrary, is valid. A statute which makes the initial carrier liable for the negligence of connecting carriers in spite of its contract to the contrary is invalid.7 A statute providing that in case of loss a common carrier shall be liable for the amount of damages which it causes, less insurance, and that the insurance company shall have no right of subrogation is valid.8 A statute which requires a common carrier to turn over to a storage company or to a public warehouse all property not called for, for twenty days, is unconstitutional.9 A statute that makes a bill of lading conclusive evidence of the amount of grain shipped is unconstitutional.10
1 Chicago, etc., Ry. v. Wellman, 143 U. S„ 339; Chicago, etc., Ry. v. Minnesota, 134 U. S. 418; Wabash, etc., Ry. v. Illinois, 118 U. S. 557; Chicago, etc., Ry. v. Iowa, 94 U. S. 155; Peik v. Ry., 94 U. S. 164.
2 Budd v. New York. 143 U. S. 517; People v. Budd, 117 N. Y. 1; 15 Am. St. Rep. 460; 5 L. R. A. 559; 22 N. E. 670; State v. Brass, 2 N. D. 482; 52 N. W. 408.
3 Chicago, etc., Ry. v. Commissioners, 134 U. S. 418.
4 Commonwealth v. Bridge Co. (Ky.), 21 S. W. 1042.
5 Tulles v. Ry. Co., 175 U. S. 348.
6 Kemp v. Telegraph Co.. 28 N«b. 661; 26 Am. St. Ren. 363; 44 N. W. 1064; Burgess v. Telegraph Co., 92 Tex. 125; 71 Am St. Rep. 833; 46 S. W. 794.
7 McCann v. Eddy, 133 Mo. 59; 35 L. R. A. 110; 27 S. W. 541.
8 Leavitt v. Ry.. 90 Me. 153: 38 L. R. A. 152; 37 Atl. 886.
9 State v. Ry., 68 Minn. 381; 64 Am. St. Rep. 482; 38 L. R. A. 672: 71 N. W. 400.
10 Missouri, etc., R. R. v. Simon-son, 64 Kan. 802; 91 Am. St. Rep. 248; 57 L. R. A. 765; 68 Pac. 653.