What is the constitutional provision regarding passenger and freight rates on railroads?

The constitutional provision regarding passenger and freight rates on railroads emphasizes that these rates must be non-discriminatory. This requirement is rooted in the principle of fairness and prevents railroads from unjustly favoring one group of customers over another. By mandating non-discrimination, the law ensures that all customers—whether individuals or businesses—are treated equally when it comes to the pricing of transportation services.

Non-discriminatory rates are crucial for promoting competition and accessibility in the transportation industry. If rates could vary wildly or be set preferentially, it would hinder fair access to rail services, potentially leading to monopolistic practices and harming the economic interests of smaller or less influential customers.

In contrast, the other choices do not accurately reflect the constitutional provisions governing railroad rates. Rates set by local governments or determined by market forces may introduce variability and potential unfairness that undermine the intent of ensuring equal treatment among users. Additionally, while rates can vary based on different types of services (such as passenger versus freight), the overarching requirement remains focused on non-discrimination among customers.