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This article focuses on legal aspects associated with various service industries. Railroad operations present a peculiarly complex application of the economic law of increasing returns, for not only is the initial capital outlay in permanent plant very great in comparison with operating costs, but also from one half to two thirds of the expenses of maintenance and operation are relatively constant and impervious to variations in the volume of traffic. Under such conditions it is obvious that up to the capacity of the plant every additional unit of traffic is always worth while, provided only that it affords any return, however small, over and above the actual out-of pocket expense of moving it.