§ 107. Long and short hauls. It shall be unlawful for any common
carrier subject to the provisions of this chapter to charge or receive
any greater compensation in the aggregate for the transportation of
passengers, or of like kind of property, for a shorter than for a longer
distance over the same line or route in the same direction, the shorter
being included within the longer distance, or to charge any greater
compensation as a through rate than the aggregate of the intermediate
rates subject to the provisions of this chapter; but this shall not be
construed as authorizing any common carrier to charge or receive as
great compensation for a shorter as for a longer distance; provided,
however, that upon application to the commissioner such common carrier
may in special cases, after investigation, be authorized by the
commissioner to charge less for longer than for the shorter distances
for the transportation of passengers or property; and the commissioner
may from time to time prescribe the extent to which such designated
common carrier may be relieved from the operation of this section.
Provided further, that any such carrier or carriers operating over a
circuitous line or route may, subject only to the standards of
lawfulness set forth in this chapter and without further authorization,
meet the charges of such carrier or carriers of the same type operating
over a more direct line or route, to or from the competitive points,
provided that rates so established over circuitous routes shall not be
evidence on the issue of the compensatory character of rates involved in
other proceedings; and provided further, that tariffs proposing rates
subject to the provisions of this section requiring the commissioner's
authorization may be filed when application is made to the commissioner
under the provisions hereof, and in the event such application is
approved, the commissioner shall permit such tariffs to become effective
upon one day's notice.

Whenever a carrier by railroad in competition with a water route or
routes shall reduce the rates on the carriage of any species of freight
to or from competitive points, it shall not be permitted to increase
such rates unless after hearing by the commissioner it shall be found
that such proposed increase rests upon changed conditions other than the
elimination of water competition.