It shall be unlawful for any such railroad to charge or receive any greater compensation for carrying, receiving, storing, forwarding or handling articles of the same character and description for a shorter than a longer distance in one continuous carriage; provided, that:

1. (1) Nothing in the General Railroad Law contained shall be construed so as to require any corporation or combination of corporations to regulate their charges for shorter distances by their proportion of through rates between terminal or junctional competitive points;
2. (2) If one corporation should use, operate or otherwise control, wholly or in part, several lines or divisions of theretofore independent railroads within the State, the Public Service Commission may in its discretion, jointly with such corporations, fix different rates of toll or compensation for freight traffic on each of such previously independent lines or divisions; and
3. (3) The Commission, jointly with the railroad companies, may make special rates for the purpose of developing all manufacturing, mining, milling and internal improvements in this State.